hmm I think working on a vmdk would be much better..

I started my self on a vmdk for the german community on n800.de..

the vmdk-image is has a 7zip'd size of 2.6GB, so it's easier to share and it works perfectly with virtualbox.
I know that there is a vmdk of INDT called maemoSDK, too, but first of all the vmdk isn't defragmented, so you have to download the maximum filesize of 20GB.
Mine has a maximum size of 20GB, too but starts at 12.1GB un7zip'd.

I think I will switch from gnome to xfce like INDT, because it will save space and I can use then the freed for firefox, which is needed to upload sources to extras-devel..

and it's pretty fast with ubuntu-jaunty (linux-virtual) on a ext4.

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a little preview for you at: http://www.youtube.com/watch?v=7zxIJialMuc

greetings from germany :P