Finally Debian is up and running on my NSLU. It took 12hrs to get it working, with power cuts in the middle of installation i was scared that i would brick my device. luckily all went well.
Current Setup,
NSLU running on debian lenny
OpenSSH
Mediatomb
samba
motion - for webcam
todo:
3gUSBModem support
DynDNS - so that i can access my NAS and security cam from internet