There is a team working on getting Gentoo to run on the slug.
German HowTo is here: http://forums.gentoo.org/viewtopic-t-417105.html
And here is the translated (mostly) version:
another howto: http://en.gentoo-wiki.com/wiki/Linksys_NSLU2(approve sites)
the thing is, that everything is ready, but almost nothing is written down
all we need is a basic system (http://ftp.uoi.gr/mirror/OS/gentoo/experimental/arm/embedded/stages/) and a kernel. The system tarballs are ready, and work fine. I've compiled my complete system with a native compiled gcc 3.4.4 - also the kernel, including the network driver. How is the kernel going to get into the flash, directly from the running gentoo? When this is done, I'll complete the howto, translate it into english and post it on the nslu2-linux wiki.
I'd like to help! :-) However, I've looked over the german howto and getting gentoo on the box seems easy enough, but compiling everything on the slug? Can you automate the "emerge" on the slug to use distcc or simmilar to crosscompile on a desktop? (I've seen other howtos on the subject so I recon it's doable) (PS: It would be great to take advantage of the exstensive gentoo package repository, but will the .ebuild/ emerge/ crossbuild work properly? I've run into problems when crosscompiling for the slug on my desktop)
Cross compiling with distcc works beautifully. I've got my amd64 working as a distcc host for my gentoo (armeb-softfloat-linux-uclibc) slug. The only really slow parts for building things are emerge --sync (which uses a ton of memory for the sync as a whole and metadata in particular), md5 comparisons (only above some size threshold that I have yet to pinpoint), and configure scripts (which compile all tests locally). Bootstrapping a compiler isn't very fun on the slug, so you may want to try and stick with the one provided in your stage3 build.
A way to avoid the problem of the overload due to emerge --sync is using a nfs share on your computer, and share your /usr/portage, in order that your slug gets from your computer. You wont compile with your slug anyway, it would take a lot of time, so just get ebuilds and compile them from your computer, and only use softwares on the slug.
Currently suggested way to install gentoo on a slug is to use stage file without uclibc as uclibc is pretty limited.
There's very simple instructions for doing this in gentoo forums at address
It also contains some information about project but unfortunately needs to be updated as rootfs on thread is pretty old, but starting with that gives you best compatibility with gentoo.
Configuration instructions can be found from numerous howto's and wiki entries on
http://www.gentoo.org and http://gentoo-wiki.com/
Unfortunately root's password is unknown on that rootfs, but that thread explains howto change it.