Ubuntu
I installed Ubuntu on my server a couple of weeks back and I’ve been quite happy with it so far. It is a debian based distribution which installs directly kernel 2.6 and gnome 2.8. It was perhaps the fastest linux installation I’ve experienced. Network, display and sound are all automatically configured and works!
I upgraded to hoary without any problems and now it runs xorg! My friend however had some problems booting after one upgrade and had to painstakingly recreate /dev before he could boot again
I had some problems with (un)mounting reiserfs on external usb harddisk, but this is more a kernel issue than ubuntu.
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