I got my usb2vga adapter working with the plug, here's a video of it all working:
http://www.youtube.com/watch?v=xClCWZ9Nv0Asheevaplug+sdcard+usb2vga adapter+keyboard+mouse.
I had to recompile the kernel to add support for the sisusb driver. Then installed xorg + gnome + firefox and added the appropriate entries to xorg.conf. It's not the speediest PC in the world, but it's definitely usable. Would work well for email+web browsing.
I'm using the StarTech.com USB 2.0 to VGA Dual Display Adapter, but any usb2vga adapter which uses the sisusb driver would work. Price for the adapter is around $60-$80.