I know that SuSE has this product already: http://susestudio.com/ Perhaps it could be an inspiration.

I've also created a custom Fedora liveCD. If I remember correctly it's a bit text heavy.

I actually somehow missed SUSE studio while looking around for similar things. They're pretty sleek, although I think they're targeting a slightly different audience. I'll be playing around with it for inspiration and possible sticking points.

ISO Generation, and particularly livecd generation does tend to be text-heavy. A whole lot of that can be abstracted away and automated though.

Update: I've had a lot of people ask about the difference between what I'm trying to do and existing tools. I've written a bit about it[1], but the thrust of it is that I want to make something that's usable by people who may not have any practical Linux experience, and I'm keeping the focus of the service targeted at single-user day-to-day machines.

[1] : http://jdodds.github.com/blog/2012/08/27/the-difference-betw...