I have played a bit with an ubuntu image, used the linaro base image and added onto it.

One of the reasons I tried this was to see if the terminal would work inside the chroot from LXDE, mainly because some programs are launched as scripts.

And - it worked!

I still need to configure my image to get the kb working, am in the processing of updating it, but as you can see, it worked nicely. I don't know what is different, but I would appreciate if someone could advice on how to configure the image to be used as chroot on the N9.