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BootingLinux from Windows CE isn't really that hard, so please give it a try, and if you do, please let me know how it goes (brad@ltc.com).
No, bootingLinux on your device won't pysically damage it, void the warranty, or add years to your life (at least not that I know of), but it can (and always does when I do it) erase all of the data in the device's memory.
If you are booting a kernel configured for serial console, and you are not getting any output on the serial port when you boot the kernel, try booting it while PC Link is running.
To boot the installer from hard disk, you must first download and place the needed files as described in Section 4.5, “Preparing Files for Hard Disk Booting”.
To boot from the installer bootfloppy, place it in the primary floppy drive, shut down the system as you normally would, then turn it back on.
After booting from the bootfloppy, the root floppy is requested.