I just installed kubuntu 8.04.1 on the board w/o extra graphics.
First boot doesn't give X, I had to boot in the service mode and install build-essentials and the nvidia-driver (177.80).
After that, X starts up fine, detecting the monitors resolution correctly (1280x1024), and uses the 3D-openGL-screens.
I agree that the desktop stutters sometimes and doesn't feel smoothly.
I'll try the LMCE-betas, thanks for the link.
DM