I decided to jump to 2.0 from 1.2 on my Asus Eee 900ha, a Windows netbook that I can dual boot with TinyCore (and other distros) on an SD card. TinyCore gets me on the Internet in 30 seconds.
But, 2.0 isn't creating a TCE directory when using the tce=sdb1/tce option in grub's sysconfig or with a manual option append on boot. Sdb1 is my SD card and, another thing, 2.0 switched this from sda1 that was the card in 1.2. Backup allows me to back up to sdb1, after mounting it, but it won't create a tce folder.
UPDATE: the tce option now works once I up'ed waitusb to 6 or higher from 5 on this platform. The flash went to sdb1 as the Windows drive partitions went to sdax from hdax in this version. (But the mount tool won't mount these partitions with the 2.0 version of ntfsprogs.tcel.)
BTW, I spent a LOT of time finally getting the Atheros wireless adaptor in this to work in 1.2, so it was a joy to see the adapter come up after just adding the 2.0 wireless*.tce extensions. AND, thanks for getting the mouse tool to stick between boots! (I'm left-handed.)
NOTE: TinyCore 2.0 was test booted on an Asus 1000HE today using my SD card built on my 900HA. The 1000HE has a different wireless adapter but it came up without trouble and DHCP'd to the local router.