I have coLinux 0.8.0 running. I have recompiled the kernel with GCC 4.2.0 and have most modules working (there are a few that you must not use under coLinux). I have tons of files and everything works (have not had any crashes / panics). I even have kde working - thus my method works ... Run new coLinux installer - but don't bother downloading a root image. Go to SF and choose your own so you can see the size and monitor the download. I chose Debian-3.0r2.ext3-mit-backports.1gb.bz2 since it is fairly new and fairly small (you can upgrade AFTER you install it).