Novell created and put up something called SUSE Studio, a web site dedicated to helping you create your own Novell SUSE-based Linux distribution. SUSE Studio is extensively documented over at the OpenSUSE wiki.
SUSE studio takes you through all the possibilities, and allows you to extensively customize the resulting distribution, including wallpaper, scripts, software, and more.
You can choose what form (or forms) the ending result takes: a VMware image, a Xen virtual image, a Live CD/DVD, and others. You can even run the image live over the web using a Flash-based console or VNC.
Over at ComputerWorld, they reviewed the updated SUSE Studio extensively; I plan to give it a try in the upcoming weeks. Should be interesting.