Thanks for the replies.. After doing a little research it seems the only solution for running an OS off a CF is Windows Embedding which I'm still not 100% sure is read only but seems to be.. Microsoft puts out a eval version that I'll test out once I get my system together but buying this OS seems out of the question as it's for OEM device builders only..

I think my 1st try will be storing my OS on the CF and running it off a RamDrive.. I wish the mini-itx boards supported 2gig of ram.. It would make this option more appealing..