Here's a bit of a late response...
I've tried both Xebian and Gentoox installs on my v1.1 box with X2VGA adapter. Disclaimer: I've never used Linux before...
In my experience, i had less problems installing xebian, but Xebian didn't work with X2VGA adapter. Not sure if it supports X2VGA or not... So, the resolution on regular composite video is crappy...fonts are barely legible. You don't need an extra bios to use Xebian though.
Gentoox supports X2VGA but needs a bios for it. Installing would have been easier if I took my time and read all the instructions twice over...in the end i got it working and it is very nice....sharp pictures, but i've not been able to get mplayer to work. check it out from Gentoox website...