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To create a custom OS image, simply install an OS into a local virtual (or real) machine and tar-gz the root filesystem. Exclude /sys and /proc. You may load this into the virtual machine via the reimage script, supplied with a distribution specified as "url= http://yourdomain.example.net/location-to-tarball.tar.gz".
We'll soon supply scripts for automating this process, as well as information on providing VMDK and OVF files.