TeraTerm Pro is free and includes the source code.
http://hp.vector.co.jp/authors/VA002416/teraterm.html (http://hp.vector.co.jp/authors/VA002416/teraterm.html)
The distributed EXE size is 30k.
However, when I compile with VC7, with /O1, the smallest I can get the EXE is 264kb. Is there any point in trying to compile this under VC7? Will VC7 be able to compile a better application than VC5 was able to create? How can I cause VC7 to create an equally tiny EXE, and should I even try?
Make sure you're not static linking it? Compress it with some exe packer?
Although I'm sure you know better, but make sure you're not in Debug :)
http://www.nopcode.com/AggressiveOptimize.shtml
Edit: Looks like they don't like my "deep linking." Scroll down to Aggressive Optimize on the projects page. VC6/7 pads your section on 4kb boundries by default.