[CentOS] Minimal installation How-to?

Hi all

I would like to install the minimal level of Centos, with yum & selinux
on my servers during the basic install from CD with Anaconda and then
use yum to install whatever application is major on that server, so that
yum installs its dependencies only, thus keeping to the target of
installing only what is needed on a server.

Please advise pros/cons of this approach and how to do it. I have never
used anaconda in such a way before...please advise.

With best regards.
Sanjay.