Of course, for such a project, you will have to do significant changes to the OS anyways, and in that sense, will end up developing a new derivative or variant of an existing OS.
One good option seems to be MeeGo or one of its derivatives. There are a number of different user interfaces / derivatives, I'm sure one of them will fit the bill.
Another option is to take a desktop distro which has a tablet- or phone-friendly interface, like KDE-netbook / Plasma Active, or Ubuntu Phone. Then, you can strip down the OS by removing components / features you don't need or cannot support on your limited platform.
I would recommend a Qt-based GUI (such as KDE, or Qtopia), because they are really nice (nice looking and easy to program).