good choice you are moving on right way
LINUX is good
you can use ubuntu LAMP (linux,apache.mysql,php) as a webserver you
can find a lot of manuals on the net just google and you the solution for the start
i'm don't think using cf is the right solution because m0n0 can run on cf but every thing
is using ram so there is no swap
and if you use that in webserver you are limited to R/W of CF
take an old pc and run from there ubuntu server
if you have any problems with ubuntu write me PM