http://www.linuxdevices.com/
http://www.embedded-linux.org/
http://www.linuxjournal.com/embedded.php
http://alllinuxdevices.com/

Sorry I don't know anything about embedded linux so all I could do is point you towards links. Those were the first few out of a google search.

Hei, i've worked with embedded linux .
Try porting into the floppy first:!: . It is a real coooooooool hack yaaaaar !!
Then add your own small modules and there is your thread to make an
embedded linux device.:p
Make ur own linux and njoy !!

mailto : sdcckarthik@yahoo.com for further help from me.
call me at any time .
cheers,
karthik bala guru