Using the backup method will create a large archive. It is useful as proof of concept, but you will want to create an extension with the proper files eventually.
The biggest tip is to exclude any pathnames with begin with /mnt, /dev, /sys, /proc, /tmp, /home/tc, or /lib/modules/2.6.33.3-tinycore/modules. You should also remove any files which were present before the installation. I see a bunch of files under /usr/local which are not part of vmplayer.
I'll create a list for comparison when I get a chance.