Now everything installed, still only 5.11 GB in use. Some non-blocking issues, no biggies:
Snipping tool needs protect on: windows\system32\Magnification.dll & windows\system32\msdrm.dll (can be re-added manually later post-install)
Gadgets appears in the desktop right click menu, but does not work (I thought I removed it as I also did not with the Vista Sidebar)
Nokia PC suite will not install (does not support the platform it say upon installation)
Windows features can not be disabled (IE amongst others would be nice to remove)
I had some issues with installations resulting in errors related to VC80 (Windows Live Messenger), VC90 (Open Office 3.0)
The last was strangely resolved: I downloaded .NET 3.5 SP1 and ran it (no messages what so ever) and after this it seemed to work. Not sure if this was the solution, but it works now.
And the best part: I do not know weither it is the vLite'd Windows 7, my positive attitude or reality, but Windows 7 feels a lot snappier than Vista.
Nokia, Open Office, WLM all require VC80 files. If I restart and try a 2nd time, then they do install.
Also I keep Windows Help so that I can remove IE8 from Windows features. Windows Serahc and Gadgets can not be removed completely. I am going to try again with keeping Windows Search and Windows Sidebar and Gadgets. Also will try to remove Game Explorer, Windows Event Log and MDAC.