1) If I install Konqueror there, would I have to reinstall it after a hard reset?
Yes. But not after a standard reboot or soft reset (just flicking battery switch, not pressing in the little button - this assumes a 5500).
2) Can I use extra space on a CF card as system memory?
Yes, using a swapfile, but you'd be better installing stuff to the CF card and using all your RAM, as working memory RAM.
Si