I have used the instructions on this site to make a gnome gui based
boot SD card and it seems to work. Has a nice collection of
applications in the build.
The first boot is a long time, it took over an hour and a half, but
it does keep sending messages out the serial port while it does that
first boot, but nothing is seen on the DVI screen until it finishes
the first boot configuration.
http://www.sakoman.com/category/7-gnome-daily-builds-r12.html
Carl