To quote JangoFett from an earlier topic:
"I had the same problem. The default Midori install does in fact take you into X after bootup. The problem was somewhere in copying my image over. Be sure and use FDisk on your CF card. Go over all the instructions again for copying over the image. I know it's a lame answer but somewhere in those steps I made a mistake. I did it a second time and the machine booted up fine. Also one other thing that may help is when downloading the file make sure it gets named properly. Windows wanted to download it as an image type (ie. gif, jpg). When in DOS on 98 the file will show up as midori.img.img but you can't see that all you'll see is midori.img~ or something like that.
It's worth the effort it is a really good build and works well with the On/Off button. Hope this helps.
Good advice. Only thing I might add is to ensure a good BIOS clear (short for at LEAST 5 seconds, I'd go for 10 myself) and other than that pray your internal Sandisk isn't b0rked. :P