linux overall is a much more "difficult" os to use on a mame cab. It is possible, but due to lack of software, lack of support and lack of hardware compatability... it'll fight you every step of the way.
Three utterly incorrect and completely uneducated remarks. Ignore all of them folks.
1) Lack of software? 10,000 free packages certainly isn't lacking in anything. If anything, I'll admit the sheer overwhelming number of applications is a bigger stumblnig block for most people, rather than the lack of them.
2) Lack of support? Some of the most detailed support available in free mailing lists, documentation and forums around the web, and direct from the developers. When's the last time a Microsoft coder hung out in a community forum and help the little people? forums.gentoo.org has been rated as one of the best online support groups ANYWHERE. Check them out for yourself. After all, it's free! That's right, you don't have to pay for support. There are thousands of friendly geeks out there willing to help anyone with a linux problem. Don't take my word for it... check the forums out!
3) Lack of hardware compatability? You have got to be joking! Give me almost any off-the-shelf PC and I'll have linux up and running in minutes. Grab yourself a copy of Knoppix LiveCD, and you can boot straight off the disc! No install necessary! Watch as the CD configures itself for your machine in seconds. Sure, I can find the odd obscure video or sata card that won't be detected "out of the box", but I can do that in Windows too. 99% of folks today will be running a P4 or AthlonXP/64, probably with onboard AC'97 audio, onboard ethernet (or a realtek based card), and an ATi, Nvidia, or Intel Extreme video card. All of which are supported under linux and XFree86/xorg. Where's the compatability problems there?
Oh, and when's the last time Windows installed to a SATA drive out of the box? Never! Hell, you need to buy a floppy drive (costing more than a CDROM these days) just to install SATA drivers on a clean Windows install!!! Talk about backwards. Oh, did I mention Linux supports almost all SATA chipsets natively? Kiss your floppy drive goodbye!
Howard: you suffer from a problem called FUD. Fear, Uncertainty and Doubt. It sounds very much to me like you've had troubles with Linux in the distant past, and are basing your modern-day opinions on decade old software. What would you say to me if I told you WinXP was a load of tosh because of bugs in Win95? Have a think about it. Better yet, trial Linux for more than 10 minutes, and get back to me.
ANYWAYS.... back on topic....
There are other options apart from X. X is very big, and needs some grunt behind it (just like XP's gui does - don't tell me you'd EVER run XP on a P166). If you don't want a whole X install, there's always fbdev and svgalib. Both of which work remarkably well on lower-end systems.
Likewise, analyse your RedHat setup. The kind folks at RedHat ensure that every service under the sun is loaded and running when you install it with the default options. Try turning off things you don't need (do you really need sendmail and squid running on a standalone box???). Alternatively, head for a nice, lean, customisable distro like Debian. You'll be amazed at how zippy it can be.