I’ve been working on a new project now for a while called SUSE Studio. Essentially it is a web interface which allows you to build your own customized version of SUSE. You can select packages, do some configuration, and even add your own branding.
I created a media center appliance to see how hard it would be. The appliance is based on openSUSE 11.1, and boots right into the excellent Elisa Media Center. You can download the image here. The tarball contains one file, which you can ‘dd’ to a USB storage device. We’re working on writing a small application to make this part easier.