Ahhh, that sound like the part of the jigsaw i was missing. I am guessing the rest of the jigsaw is something like uboot has a kernel/modules sitting somewhere in nand, and it execs the target kernel at boot time, the target kernel boot= and root= parameters probably take care of which distro you end up with.
*off topic* When i boot the pdaxrom recovery kernel (reboot holding down OK). It mounts the cf card, but there is not /dev/hda1 file (there is a /dev/hda) and if I try to access it (cd /mnt/cf) it just hangs ?