Oh, hey... A very old thread forgotten in the darkest corners of my dark brain.
Well, just to inform you: as time goes by I successfully created a highly customized LFS for our "embedded" hardware. And it works fine! It was a lot of fun creating it on a Dual Intel XEON 2.66GHz.
Gentoo would have been an alternative because it has its own integrated package management which I think is great. I miss something like that in the LFS I built. I integrated RPM now, but as you can imagine it doesn't work as it should because of the missing dependecies... Well, that isn't a big problem because the only thing we need RPM for is a scheduled update of a proprietary software, called ISTSBIOS. And for that all dependencies in the LFS are always matched because it has been developed inside this LFS.
Well... just for your information.
And @320mb: I just saw that you are from Pikes Peak (btw: I'm from Hamburg, Germany). For this reason I must tell you I'm a big fan of Audi Quattro and the legendary Rallye season of 1987 in Pikes Peak which was won by Walter Roehrl, you know?! I think, you are to be envied for living there.