I can describe my basic bootup, which involves micrcore, xvesa, jwm and wbar.
Since you are getting errors "when starting X", I'll start with the assumption that you can boot microcore and hence you must have your bootloader configured correctly enough to get that far.
Starting with a boot device (I use a USB key, referenced here as sdb with the filesystem on it at sdb1) that already has grub installed, I download the distribution files bzImage and microcore.gz and set up a new stanza in grub's menu.lst to boot from them with my favorite bootcodes.
Then I create an empty /mnt/sdb1/tce directory and an empty /mnt/sdb1/tce/optional.
Then I download Xprogs.gz, Xlibs.gz and Xvesa.gz into /mnt/sdb1/tce and create onboot.lst, also in that directory, which contains simply
wbar.tcz
jwm.tcz
Then I download jwm.tcz and wbar.tcz (along with their .info, .list and .md5.txt files) into /mnt/sdb1/tce/optional
Then reboot and...
it just works. The latest version has a menu option to restart wbar - try that if wbar is not visible when you first boot up.
Then I use appbrowser to download whatever else I want.
Now, this may be overly simplified because:
*) I've never used xorg
*) I've never fooled around with any of the window managers except jwm and the two flwms
*) There's plenty of room to introduce mistakes in the bootcodes in menu.lst - the applicable part of my menu.lst looks like this:
timeout 10
default 0
fallback 0
# for booting Micro Core Linux 2.11.5 lem 20100627
title mc2.11.5 (GREENFOB3)
root (hd0,0)
kernel /boot/mc2.11.5/bzImage quiet video=1280x1024x24 host=greenfob3 noutc tz=GMT+5 ssh waitusb=9 tce=LABEL=GREENFOB3 os=mc2.11.5
initrd /boot/mc2.11.5/microcore.gz
*)I use my web browser to manually download wbar.tcz and jwm.tcz which works easily because they have no deps. If they had any, I would either have to resolve the deps manually or boot to shell (microcore standard) and download them using ab.
I still wish there was a way to specify a tce device -and- a specific directory on it, like this:
tce=LABEL=GREENFOB3/tce2.11.5
but there (currently?) isn't.