I now have a great little thin client! I can't believe how easy this was. I used the midora image, setup the basic network settings, found rdesktop and ran it and it was up in minutes. The only part that was a bit of trouble was getting the CF setup to boot.
I couldn't partition the CF on my Windows 98 laptop for some reason. I could partition it on my Windows 98 desktop using a Lexar Jumpshot USB CF adapter, but when formatted using that USB adapter it would not boot. I then formatted the CF using the PCMCIA CF adapter and it still wouldn't boot. I then ran part.exe with the USB adapter and set the partition to boot and it finally worked.
I had an odd USB network adapter that I acquired second hand for almost nothing (like the IA-1 that I have) and it worked! It is an "@home Network" adapter that probably was part of broadband Internet package or something. I think it is a Peracom 10/100 adapter if that helps anyone.
Does anyone know how to get rdesktop to let you see the task bar? I guess I can login using another machine and place the task bar on the side of the window, but I can't see it or access it at all under X Windows... Any hints?