Topic: Newbie questions - I want an OS with an X server and a few apps..

Is this possible? I just got the Infocast 8 inch and I tried out a web browsing app on my usb stick, unfortunately the touch screen didn't work.. boo. Anyway, my goal is to use this as a small computer to check bus schedules, control an MPD server, and compile drivers for a USB device which will capture events and then send them over the internet to my main server. Can I do this? I'm reading about Openembedded but I'm sort of in over my head right now. I am fine with Linux and Embedded devices, I used to compile stuff for my Nokia N810 in scratchbox..but that was a more obvious linux system, I'm itching for some command line, or something! All I really need is what I mentioned before. If PuppyLinux, DSL, UbuntuMinimal etc could be installed on here, I'd be set, but I wouldn't know where to start...