Hi,
I am myself using a crosscompiler for the kernel and then I copy it to a cf card and boot the kernel from it. On the SIMpad I have flashed an Angstom image. I found this was the most convenient way for me to just do kernel development.
But I would recommand you openembedded.org. They are having a real good getting started page [1]. You can use this to generate fresh images or just compile the kernel.
If you need help with it just ask me. After you was able to build the first image. I will explain you how to include the latest patches from the svn.
If you than have a running 2.6 linux on the simpad you can connect to it via minicom.
The emulation question is about the distro at all I think. There is the possibility to build an Angstrom image for x86.
If you want to help the Angstroem Team the best place is to ask how on freenode.net irc channel #angstrom . If you want to write applications for the user interface I think you shuld contact some people at #gpe or #opie on the same irc server. If you want to do Kernel development you should ask me or mrdata about which parts are have to be done. Best way to do this is either on #oe or here in the forum.
regards
nice
1
http://www.openembedded.org/wiki/GettingStarted