I think most probably it will run on your system but i am not sure...
any way there is another similara xPud -
xPUD - Small and Fast Linux LiveUSB
Youtube Demo
YouTube - xPUD Fast Boot Demo @ TOSSUG
From:
penk: xPUD 0.8.5 - a WebOS Platform
We're glad to release a development version of xPUD, the whole OS image is only 24MB, comes with faster boot time (5.09 seconds on EeePC 701), and the user interface with small screen support. xPUD now can be a great WebOS platform!
it has got just basic utilities, a web browser with gears, file browser, etc.