Sad to hear.Unfortunately, due to extenuating life circumstances, I probably won't be able to help out as much as I planned, let alone lead the project. I'm hoping that you all will take this project and run w/ it. Perhaps sometime in the future I can re-join the efforts.
I would love to take on this project. I have some time to spare. But as far as using minimyth, I have a few concerns. I propose that we could use a ubuntu based OS. This seems to be the simplest and most user friendly way of doing things. We could use Reconstructor to make a carpc customized livecd/install cd of ubuntu. By stripping the unnecessary packages and by using a fluxbox/xfce/icewm window manager we could get the image <300mb. By adding repositories we can get easy access to awesome stuff after installation: suspend2, etc. everything else is just an apt-get install away.
A minimyth based distro would have a lighter footprint, however it requires a lot more work to get it customized to the point that it is usable in the car. After that it is very limited on what you can do to it after it is installed.
Contributions can be made by creating packages, usplash images, etc.
I would love to hear what everyone here thinks of the proposition. If agreed I can set up a page on the nanonymous webpage and create a forum for it.