re: fitting linux into 256 MB being impossible, that's clearly nonsense. Ever heard of Damn Small Linux?
Okay I should have been more specific but I thought it pretty obvious that when I said Linux I meant a Maemo 5 calibre distro.
Obviously you CAN fit Linux into almost any amount of space, just look at your average broadband router, but you wont have a ton of libraries and XOrg on there.
The only problem 1.2 introduced for me is occasional... Everything else is great.
I experienced more problem than that, mostly scren locked up, very frequent. It un-freeze after a few seconds, but it is very frequent and extremely annoying.