I've built it twice already.. and many, many copies of nano
I'll give it another go on my server (done it on the workstation before) tarball it and give you access.
Where I see the problem is nailing down repositoriy and .bb file versions for guylhem rom. My experience with oe is that getting a working build system is not that bad, but that the deveopers keep..well..developing it, which keeps breaking packages or compatibility. I assume you will put your kernel in the path for kernel cross compiling? If this works... what's next.. opie, as stated? opie is nice, has lots of packages. and hs the oz compatlibs. opie with decent fs and partitioning will be very cool
on the X front... pocketworkstation works pretty well through opie-keypebble 1.0 -not quite as snappy as xqt, but much less prone to gpk compatbility issues (abiword for example does not see to like xqt gtk, which I have uninstalled) and it rotates, etc. Still no joy on the fbvnc keymap. ANyhope of someone suddenly compiling a tightvncviewer?
Have you looked at emdebian? they also seem to be working on a toolchain.