I do not know of any recent live cd projects, but it shouldn't be that hard to do.
1. Select a light live cd linux distro ( since the regular ones are mostly to show off all the eye candy and features, so they are very slow ) Light distroes I know of that are activly : Puppy Linux and Damn small Linux(note: uses old 2.4 linux kernel in stable versions).
2. Get packages for that distro to setup a php 5.2.x stack with lighthttpd, Nginx or apache(but apache requires more memory then the others!) + mysql client / server
