projectgus has just announced that OpenWRT has been ported to the Zipit Z2. Â The base installÂ includes wifi support, ssh server and ZipIt-friendly console and there are nearly 3000 prebuilt binary packages available to install using the opkg package manager. As OpenWRT was designed to run on devices with small (<64M) ram (routers) it should run quite well and will be a nice base for people to use to build their own custom rootfs.
To be able to use the OpenWRT port you must have a u-booted zipit and be able to format an sd card as ext2 which means you'll need to have access to a computer running linux (or have a linux VM) that can write to sd cards (USB SD Card Reader/Writer most likely as most virtualization software, VirtualBox, VMWare and linux generally have problems with builtin sd card reader/writers, especially on HP computers). The reason you need to have a linux system is that the OpenWRT Zipit Z2 port is supplied as a tarball rather than a disk image.
The OpenWRT port contains mostly console/text programs however some graphic programs have been ported from the Ben Nanonote OpenWRT port.
You can find more details about the port on the projectpage