Well, what I did was plug a usb dive and usb keyboard in to the 360 and installed a version of linux in text form only from a cd. Then I built the graphic interface, custom configured for the 360, with all the drivers (minus wifi). Using packages that take very little space. Mind you that usb and compact flash wifi cards work well. Just not the internal VIA. So yes its very tailored to the DT360.
Is it a full distribution? No it has very limited function and space. Its a traditional file system. Linux can exist on many kinds of file systems. Puppy and others like it utilized a compressed file system and take far less space and load to ram. Could be a more practical use of resources depending on that you plan on doing. I only use a web interface on xbmc to change media.
There is a version of puppy linked here on this site that can boot on a DT366. Have not tried a 360 yet but its worth a shot as it is more featured than my image. Look for posts in the linux section from Matt. He made a image of puppy that is 100 percent working on the 366.