Another eensy-weensy step forward...
Tomorrow morning I'll be posting the link here...
currently uploading to my cloud drive is...

LMDE2Betsy - 32bit - Mate - new jessie (hooray!) - rolling release - live iso ...with qtsdk 1.1.1 for n900 and Scratchbox for n900... it ain't small 3.2gb and the system will need to be updated once installed ( a handful of updates...I was going to but decided against additional overhead on the live iso.)

The interesting thing here is ..Scratch isn't in a vm. It's on system.
which is bloody nice for a change...
I was getting sick of booting up my mad scientist lapdog ..
and then frickin' (love that word ....so expressive...) booting up a vm...
and then getting inta Scratch...
frickin' house of endless frickin' () doors...hahahahahaha..
(mental note- less sugar...more sleep...perhaps see therapist ...)

Also...Scratchbox is only installed up to the "Installing the Maemo SDK" section (but no further.) from here
https://wiki.maemo.org/Building_a_Vi...mo_development
It just balloons in size from there...
I do think it possible to get it all on the live iso ...
I'll fiddle with it more later.
For now it does cut down a bit on setup time having Scratch at least installed.

Suggestions in order:

-Suggested - make an immediate back up copy of this iso once downloaded.

-Suggested - usb/ sdcard size of at least 32gb.

-Suggested - once the user has put this on a usb/ sdcard IMMEDIATELY use a partitioning tool (don't forget)....
gparted...whatever...
to enlarge the size of the usb/ sdcard live distro partition to that 32gb minimum BEFORE continuing with Scratchbox and running the Maemo SDK installation and installing binaries and cool crap...

-Don't do all this on an 8gb usb/ sdcard ...
or space smaller than your 32gb...
or you'll run out of room real quick ..
who wants to develop on free-space the size of a postage stamp?

-All login/ passwords are betsy32.

https://drive.google.com/file/d/0B5q...ew?usp=sharing

edit: I've deleted the above linked files...
and methods here as well..
and to steer people in the right direction and not have loose ends...
for new instructions, suggestions and a better concluding solution to this issue and essential downloads go here :
http://talk.maemo.org/showthread.php?t=95567