Okay, after lots of toying around, here's a badly needed update-
*EDIT- I forgot to mention something- in this tutorial, I'm assuming you're using a USB DVD drive.
However, the procedure isn't much different if you're installing from a flash drive/memory stick
Before installing, do the following-
Download the Apple COMBO update (~750MB) for 10.5.8 on to a disc or flash drive.
Download the
D250.zip file that I prepared. It comes with-
-Kextloader B7
-Atheros 5007EG drivers
-Kismac 0.2.99
-VooDoo 2 alpha 3 kernel (you may install an alternate kernel if you wish, however hyperthreading might not work. Your mileage will vary)
Now-
1.Insert your iAtkos disc and boot from it
2.Format your disk. MAKE SURE IT IS SET TO MBR (GUID partition schemes tend to corrupt over time on this netbook)
3.In the 'Customize' menu, select the following-
Main System -> Bootloader -> Chameleon 2
X86 patches -> Decrypters -> dsmos (uncheck 'AppleDecrypt')
Kernel -> 9.5.0 voodoo
ACPI -> x86 ACPI
GFX -> Intel GMA 950
Sound-> Voodoo HDA
System -> Apple PS2 controller (voodoo PS2 w/ trackpad is optional, but has a tendency to stop working and cause kernel panics)
System -> Laptop battery (NTFS-3G and ExtFS work as well if you want them)
you may also install an alternative language to English
*EDIT- Uncheck 'Disabler'. Disabler.kext WILL mess up your 10.5.8 install and make your system ubootable.
4.On first boot, use the following flags-
-f -v cpus=1
5.Go through the video, cheesy music (don't worry about the sound cutting out randomly- this is due to the cpus=1 trick), username, etc.
6.Unzip the D250.zip file somewhere. Use OS x86 tool to install the VooDoo Alpha 3 kernel. Reboot w/ no flags (well, -v if you're curious). You MAY get a kernel panic- just reboot again if that happens.
*EDIT- after you install the kernel, install system.kext and seatbelt.kext files for kernel version 9.5.0. You can find these via google or insanelymac.com
7.Backup kexts like so- 'sudo cp -rf /System/Library/Extensions /System/Library/Extensions.backup'
8.Backup kernel like so- 'sudo cp -rf /mach_kernel /mach_kernel.backup'
9.Now, install the 10.5.8 Combo update that you downloaded earlier. DO NOT REBOOT.
10.Open up OSx86 tool and select "Repair permissions", "Set Extensions permissions" and "Clear Extensions Cache". wait for it to finish
11.NOW reboot. It will reboot once or twice on it's own- don't fret! Once it's done, you should be back to your desktop with an ugly 800x600 resolution or a blue screen.
12.Turn off the computer, insert the iAtkos v7 disc, boot from it, and select ONLY the Intel GMA950 driver
13.Reboot once more, and you should be back at your desktop with a nice 1024x600 resolution again.
14.Now that that's done, open up the AR5007EG.pkg file. Reboot.
15.Open Kismac, go to preferences and add "Airport Extreme passive". Now scan- you should see some networks.

And that's about it. You now have a D250 with 10.5.8. STAY AWAY FROM AIRPORT UPDATES. All other updates are fine to install.
Remember- when you reboot, your wifi might break. If that happens, try rebooting with -f. Chance of it working after reboot- Not very high.
Suggestion- invest in a new PCI-e wifi card

Make sure to DISABLE SLEEP. It causes a silent kernel panic.
Things that don't work- Web cam, ethernet (Attainsec Gigabit rev 0c), sleep/hibernate
Untested- mic
*note on the whole Snow Leopard thing- Snow Leopard *should* work, because it *is* 32-bit compatible. Good luck getting it to install on an MBR HDD. If/When I try out Snow Leopard (probably after the release of 10.6.1), I'll post another tutorial for it. [update 10/17/2009- Snow Leopard is really fu**ing buggy. Looks like I won't toy with it for quite a while]
Also, a screenshot-
