SqueakNOS is not completely dead, however, it only supports serial mice. And, to answer the question... I would use the slax squeak thing, or some minimilized linux to run squeak on. Then you could also easily change your image you were running as well!
I also like the idea of using a minimal linux to run squeak on. Linux has a lot of developers supporting it on many platforms. Why not build on their work and not redo that work by writing Squeak drivers for keyboards, mice and other devices. Just hide Linux as best you can, use it for the low level stuff and have Squeak do everything else.
Lou ----------------------------------------------------------- Louis LaBrunda Keystone Software Corp. SkypeMe callto://PhotonDemon mailto:Lou@Keystone-Software.com http://www.Keystone-Software.com