I just followed the remaster steps in the wiki:
http://wiki.tinycorelinux.com/tiki-index.php?page=RemasteringWhen I got to the editing part i used the command "tar zxvf extension.tce --same-owner -C /path/to/source"
Unnecessary files were removed (headers, locales, unused modules, unused executables, etc.). Be sure to copy over all files from the home directory to /etc/skel then use "sudo rm -rf /path/to/source/home/*". Edit the startup scripts, .xsession, bootlocal.sh, etc. chroot into the source directory, create any additional users I want, depmod and ldconfig.
The benefit of a remaster is that everything is in the compressed cpio image (tinycore.gz) so the longest part of the boot will be unpacking this. Also the benefit of TC over DSL is there are very few unnecessary pre-installed applications which really helps to decrease size. The KNOPPIX image that I used with my DSL installations is about 100MB where my TC image is only around 50MB. This is probably where most of the speed comes from. So you would need to look at your application and determine what parts are necessary what parts are not.
If you want to have a lot of speed out of a single contained iso then you could create a directory in the root of the iso and include the tcz extensions in this directory. Create a custom bootcode (or just hardcode it into tc-config) that will install all extensions found in this directory. Doing this will still allow a seperate tce directory for the user. The remaster section in the wiki has all the info for remaster and creating an iso image. The problem with this is the media that contains these extensions needs to remain mounted.
Another option to get some speed would be to unpack all the extensions that you are using into a single directory and repack all of these extensions together into one giant extension and use advdef to compress it further (this will take a long time with 200MB). This should save a little bit of time, and you would need to make sure the tce.installed files are present as not to break the appbrowser support.