I know how you feel...
Right now I'm planning to load Gentoo linux on a 340MB partition on my HD then use Ghost to transfer it over the my Microdrive.
From there I can choose what I compile and it will prepare it specifily for the CPU with whatever options you want streigh from the FTP.
Thats the plan and if I'm not happy with it I'll throw BeOS 5.1d DANO on my clipper.
Are you having any trouble getting your MD to boot dos? I can only image it with linux to have it boot but its kinda sketchy... And I get the HDC interup failure when the kernal is booting with jailbait or midori.