Partial Success ;-)

I looked into the OpenWRT project to see if they had some guidance or information that could help me with this task. They did have a great deal of information. I decided to try loading an image of a somewhat similar device and to my surplice I was able to boot and use the busybox. A few things do not work (wifi and ethernet for example), but I believe this will be corrected when I start building my own images. Here I have a screen splash of the boot process:

Restarting system.
+starting api entry
Ethernet eth0: MAC address 00:03:47:df:32:a8
IP: 192.168.15.169/255.255.255.0, Gateway: 192.168.15.168
Default server: 192.168.15.168, DNS server IP: 0.0.0.0

RedBoot(tm) bootstrap and debug environment [ROM]
Red Hat certified release, version 1.92p1 - built 14:07:09, Oct  8 2004

Bootloader version 1.1
Platform: Intel Generic Residential Gateway (XScale)
Copyright (C) 2000, 2001, 2002, Red Hat, Inc.

RAM: 0x00000000-0x02000000, 0x0001e5c0-0x01fdd000 available
FLASH: 0x50000000 - 0x51000000, 128 blocks of 0x00020000 bytes each.
RedBoot> fis load linux
RedBoot> exec
Using base address 0x00800000 and length 0x000e8034
Uncompressing Linux................................................................. done, booting the kernel.
Linux version 2.6.21.6 (nbd@ds10) (gcc version 4.1.2) #2 Sun Sep 30 20:44:34 CEST 2007
CPU: XScale-IXP42x Family [690541f1] revision 1 (ARMv5TE), cr=000039ff
Machine: Linksys WRT300N v2
Memory policy: ECC disabled, Data cache writeback
CPU0: D VIVT undefined 5 cache
CPU0: I cache: 32768 bytes, associativity 32, 32 byte lines, 32 sets
CPU0: D cache: 32768 bytes, associativity 32, 32 byte lines, 32 sets
Built 1 zonelists.  Total pages: 8128
Kernel command line: root=/dev/mtdblock2 rootfstype=squashfs,jffs2 noinitrd console=ttyS0,115200 init=/etc/preinit
PID hash table entries: 128 (order: 7, 512 bytes)
Dentry cache hash table entries: 4096 (order: 2, 16384 bytes)
Inode-cache hash table entries: 2048 (order: 1, 8192 bytes)
Memory: 32MB = 32MB total
Memory: 30416KB available (1788K code, 167K data, 76K init)
Mount-cache hash table entries: 512
CPU: Testing write buffer coherency: ok
NET: Registered protocol family 16
IXP4xx: Using 16MiB expansion bus window size
PCI: IXP4xx is host
PCI: IXP4xx Using direct access for memory space
PCI: bus0: Fast back to back transfers disabled
dmabounce: registered device 0000:00:01.0 on pci bus
Time: OSTS clocksource has been installed.
NET: Registered protocol family 2
IP route cache hash table entries: 1024 (order: 0, 4096 bytes)
TCP established hash table entries: 1024 (order: 1, 8192 bytes)
TCP bind hash table entries: 1024 (order: 0, 4096 bytes)
TCP: Hash tables configured (established 1024 bind 1024)
TCP reno registered
NetWinder Floating Point Emulator V0.97 (double precision)
squashfs: version 3.0 (2006/03/15) Phillip Lougher
Registering mini_fo version $Id$
JFFS2 version 2.2. (NAND) (C) 2001-2006 Red Hat, Inc.
io scheduler noop registered
io scheduler deadline registered (default)
IXP4xx Watchdog Timer: heartbeat 60 sec
Serial: 8250/16550 driver $Revision: 1.90 $ 2 ports, IRQ sharing disabled
serial8250.0: ttyS0 at MMIO 0xc8001000 (irq = 13) is a XScale
IXP4XX Q Manager 0.2.1 initialized.
IXP4XX NPE driver Version 0.3.0 initialized
ixp4xx_crypto 0.0.1 registered successfully
IXP4XX-Flash.0: Found 1 x16 devices at 0x0 in 16-bit bank
 Intel/Sharp Extended Query Table at 0x0031
Using buffer write method
cfi_cmdset_0001: Erase suspend on write enabled
Searching for RedBoot partition table in IXP4XX-Flash.0 at offset 0xfe0000
6 RedBoot partitions found on MTD device IXP4XX-Flash.0
Creating 6 MTD partitions on "IXP4XX-Flash.0":
0x00000000-0x00040000 : "RedBoot"
0x00040000-0x00140000 : "linux"
0x00140000-0x00fa0000 : "rootfs"
0x00240000-0x00fa0000 : "rootfs_data"
0x00fa0000-0x00fc0000 : "unallocated"
0x00fc0000-0x00fc1000 : "RedBoot config"
0x00fe0000-0x01000000 : "FIS directory"
i2c /dev entries driver
nf_conntrack version 0.5.0 (256 buckets, 2048 max)
ip_tables: (C) 2000-2006 Netfilter Core Team
TCP westwood registered
NET: Registered protocol family 1
NET: Registered protocol family 17
802.1Q VLAN Support v1.8 Ben Greear 
All bugs added by David S. Miller 
XScale DSP coprocessor detected.
ixp4xx_mac driver 0.3.1: eth0 on NPE-B with PHY[-1] initialized
ixp4xx_mac driver 0.3.1: eth1 on NPE-C with PHY[1] initialized
drivers/rtc/hctosys.c: unable to open rtc device (rtc0)
VFS: Mounted root (squashfs filesystem) readonly.
Freeing init memory: 76K
Warning: unable to open an initial console.
- preinit -
switching to jffs2
mini_fo: using base directory: /
mini_fo: using storage directory: /jffs
- init -
init started:  BusyBox v1.4.2 (2007-09-29 10:12:09 CEST) multi-call binary

Please press Enter to activate this console. eth0: NPE-B not running
eth0: NPE-B not running
PPP generic driver version 2.4.2
wlan: 0.8.4.2 (svn r2568)
ath_hal: module license 'Proprietary' taints kernel.
ath_hal: 0.9.30.13 (AR5210, AR5211, AR5212, AR5416, RF5111, RF5112, RF2413, RF5413, RF2133, REGOPS_FUNC)
ath_rate_minstrel: Minstrel automatic rate control algorithm 1.2 (svn r2568)
ath_rate_minstrel: look around rate set to 10%
ath_rate_minstrel: EWMA rolloff level set to 75%
ath_rate_minstrel: max segment size in the mrr set to 6000 us
wlan: mac acl policy registered
ath_pci: 0.9.4.5 (svn r2568)



BusyBox v1.4.2 (2007-09-29 10:12:09 CEST) Built-in shell (ash)
Enter 'help' for a list of built-in commands.

  _______                     ________        __
 |       |.-----.-----.-----.|  |  |  |.----.|  |_
 |   -   ||  _  |  -__|     ||  |  |  ||   _||   _|
 |_______||   __|_____|__|__||________||__|  |____|
          |__| W I R E L E S S   F R E E D O M
 KAMIKAZE (7.09) -----------------------------------
  * 10 oz Vodka       Shake well with ice and strain
  * 10 oz Triple sec  mixture into 10 shot glasses.
  * 10 oz lime juice  Salute!
 ---------------------------------------------------
root@OpenWrt:/# df -h
Filesystem                Size      Used Available Use% Mounted on
/dev/mtdblock3           13.4M    648.0k     12.7M   5% /jffs
mini_fo:/jffs           960.0k    960.0k         0 100% /
root@OpenWrt:/# ifconfig
lo        Link encap:Local Loopback
          inet addr:127.0.0.1  Mask:255.0.0.0
          UP LOOPBACK RUNNING  MTU:16436  Metric:1
          RX packets:0 errors:0 dropped:0 overruns:0 frame:0
          TX packets:0 errors:0 dropped:0 overruns:0 carrier:0
          collisions:0 txqueuelen:0
          RX bytes:0 (0.0 B)  TX bytes:0 (0.0 B)

root@OpenWrt:/#

To perform the installation I used this link:
http://wiki.openwrt.org/OpenWrtDocs/Hardware/Gateworks/Avila_GW2348_4
And
http://www.dd-wrt.com/wiki/index.php/Installation#First_time_install

Once I build the perfect image I will put together a step by step upgrade how-to and publish the image, maybe it can be backported in.