Haven't tried one of these myself, but they look quite nice.
From the specs it seems to be able to run as a MD. But the wiki http://wiki.linuxmce.org/index.php/Generic_PC
states 512MB of RAM, so I would suggest the Linutop 2, although the Linutop 1 might just cut it.
The main problem might be the graphics "card" (AMD Geode). From some googling, it seems that the chip set on the Linutop is supported by the xorg-video-driver-amd driver. I couldn't find any definite information about the video playback acceleration capabilities of the device/driver, so you may not be able to use it to display video or perhaps even use the UI2. Also, I think you need to manually set up the driver.
This indeed look like something that would be perfect for small MD.