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partition size for embedded installs seems to be just 40MB with just 3MB free after installing 0.7x. For easier future updates it would be good to increase it to about 60M or more. diskspace is today cheap.
For embedded the OS image will be installed using 'dd' to the whole target disk, so there is no special partitioning. For embedded + data partition the OS partition is 64MB.
Anyway, 0.7 seems to be the last version of FreeNAS as it is right at the moment. For the next version the whole system will be recoded (what i'm doing at the moment). There will be no more embedded installs anymore, also the OS will be Debian.