Hello again,
I've been playing with this for a few days and now I'm a satisfied customer--not so much a satisfied with the Buffalo software, but satisfied with the excellent Linkstation Wiki. I followed the instructions on this thread, and I run the servers using chroot rather than boot from the large partition.
Thread:
http://linkstationwiki.org/forum/3230.html
Eventually, I'd like to repartition the drive so I have the 500MB linkstation partition, a 1GB debian partition, and the rest for data, but for now I don't see much degradation runing servers via chroot. I run netatalk, smb, daapd, sshd , and cupsys/printing via chroot, and basically only telnet from the LS linux.
Good luck!
mickey