No, I was wanting to have everything running off of the CF drives. (solid state, no unnecessary network traffic)
Theoretically this is possible, but from the looks of the MD installation they have not tried to trim this down at all so it would require work.
Any reason why you think that this would be preferable over a network boot. I think the network booting is one of the best parts of the system. Keep in mind that the MD mounts the media shares from the core anyway - so they might as well mount their whole OS. They certainly could not run standalone.
I would be interested to see how you get on with it though.