The main problem when packaging separate Tinycore extensions from texlive huge iso image
is that TeX font mechanism implies variations INSIDE single .map files rather than 
inside the hosting directory (i.e., files are not atomic).

I don't have enough knowledge of inner details of this mechanism to know how/whether
that can be handled e.g. by separating only the varying files.
So I made i
1) a basic smallish texlive.tcz with few fonts in it.
2) Then put more packages and fonts in two additional scm extensions, avoiding conflicts
with texlive.tcz by using TEXMFLOCAL this time.
3) Further, specific non conflicting tczs can be then created

Correspondingly, you can follow these steps:

0) boot base norestore, make sure /etc/sysconfig/tcedir is correct and (sudo) mount texlive2012-20120701.iso on /mnt/iso
1) sudo texlive.tcebuild (this requires lots of ram; tamper with $tmp to mitigate)
1b) mv -i texlive.tcz thus obtained into /etc/sysconfig/tcedir/optional and repeat 0) 
2) texlive-recommended.tcebuild
2b) mv -i the results into /etc/sysconfig/tcedir/optional and repeat 0)
3) texlive-addon.tcebuild collection-xxxxxx

NB: see texlive-addon.tcebuild to see what xxxxs have been tested. 
Each of them should be packaged on a base norestore