No one should embark upon an embedded project incorporating Linux lightly. There are some points to consider before dropping existing development plans to grab the coattails of the Linux revolution.
First, have a clear understanding of what you want to accomplish by using Linux in an embedded-systems project. Don't "do Linux" because it happens to be the technology of the month.
In all likelihood, you also are going to use Linux as the development platform, as well as the target operating system. Check out the Linux resources on the web to ensure that the tools you need for your project are readily available. Make certain that you have the language compilers, code libraries, debuggers, device drivers, and development utilities before embarking on the project. If you additionally need cross-compilers for your target, test them first.
Also, research available information and support resources. There's free support on the web, in Usenet forums, and through e-mail list servers. That support, while freely given and often highly accurate and insightful, can't be depended on to provide the answers you need when you need them. Make sure you can line up professional, paid support, with embedded development experience.
Set your expectations appropriately. If this is a first project, factor in time for the team to learn the operating-system internals, and get used to the tools. Don't expect miracles. After all, it's only an operating system.
Linux, as both a host and target platform, will undoubtedly become a major force in embedded development over the next several years. A growing number of developers are seeking access to small and fast database-management systems (see "Building Linux Databases," p. 110). Linux, however, is neither a miracle technology, nor a way to salvage a bad design. The rules that apply to other operating systems are the same for embedded development using Linux.
The open-source nature of Linux is a two-edged sword. It provides an almost unprecedented freedom in adapting the operating system and development tools, at a potentially a lower cost than other alternatives. But, like most freedoms, it should be used in moderation.