We have been able to install Ångström Linux to our beagle board. Ran into couple problems. The first one was we trusted BeagleBoard Beginners wiki just too much!!
You see we learned that we should NOT set any environment variables while using demo u-boot image which was downloaded from here. In fact what we did is we created our own Ångström image (from Ångström site) and simply installed that to our Linux partition of our SDHC card. And it worked beautifully. Though I must say first boot is a drag, very very slow.