wow I think you're asking for a bit to implement a windows VM that is under 60Megs. the Wine Binary installer itself is 14 megs installed on disk I see
/usr/local
340K ./winetools/scripts
116K ./winetools/doc
112K ./winetools/icon
196K ./winetools/po
1.1M ./winetools
/usr/lib
50M ./wine
and finally
[tim@nimbus lib]$ ls -lh /usr/bin | grep wine
6.4K May 31 21:45 wine
1.6K May 31 21:44 wineboot
1.6K May 31 21:44 winebrowser
1.6K May 31 21:44 winecfg
1.6K May 31 21:44 wineconsole
1.6K May 31 21:44 winedbg
1.6K May 31 21:44 winefile
20K May 31 21:45 wine-kthread
20K May 31 21:44 winelauncher
1.6K May 31 21:44 winemine
1.6K May 31 21:44 winepath
5.8K May 31 21:44 wineprefixcreate
9.4K May 31 21:45 wine-preloader
8.6K May 31 21:45 wine-pthread
236K May 31 21:45 wineserver
5.7K May 31 21:44 wineshelllink
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You're not too badly over 60mb with this but this is the wine software only not the windows applications you want to run on top of it..
I currently run WINE on a customized Slax Live CD. As it stands, the live CD is just under 600MB, and I have no way of burning (or reading, for that matter) a DVD. Therefore, I'm clearly a little constrained.
Though, if I know how big the VM is, I could try to cut out some things that aren't used very much.