You have the latest version BIOS for a 1.0 board from my info. It will boot off a USB device when set to do so. With only 128mb of RAM you will be a little limited on your choice of OS. Most of the V1 boards had only 64mb of storage too so you'll need to upgrade that. Originally they were either shipped with Windows CE or LINUX that would boot to a terminal server. If it was OEM customized for a point of sale system - like BOSANOVA - then you could have more storage space.
You can run MICROXP or Windows XP stripped down with a tool called NLITE - lots of messages on this forum about where and how - you'll need 512mb of more storage to do that. Another choice is Puppy Linux version 4.31 from here:http://distro.ibiblio.org/puppylinux/pu ... up-431.iso
Puppy can run off the USB CD or USB flash drive. You'll want to install it to the IDE port for speed, the USB is v1.1 so it's slow. Upgrading the internal storage is easy with an IDE to compact flash adapter and then use a 4gb CF card available from EBAY cheap.
DT166s are great to dedicate to a single purpose that is not too demanding on the processor. I have one dedicated to streaming audio, another one runs a 'black box' receiver (ICOM 1000) that controls the frequency and mode of the receiver. I have one in the car that runs GPS tracking software for position reporting - they run off 12v in the vehicle nicely. I picked up a dozen at a flea market and I still have a bunch laying around.