I'm not an expert of interpreting the 'Xorg.0.log' I just thought it might help to give someone else an idea. Mind you this log is for the 'sudo Xorg -configure' run (as suggested), which does not seem to crash. I wonder what log you'd get if you let 'Xorg' run for a few seconds and then have it killed again, e.g. via
Xorg & PID=$! ; sleep 10 ; kill $PIDThis should work without you being stuck with a non-responsive X server (at least it does it for me).
BTW, have you tried (as suggested in the 'Xorg-7.5.tcz.info') to use the 'xorg.conf.vesa' (e.g. via
sudo cp -p /etc/X11/xorg.conf.vesa /etc/X11/xorg.conf and then start 'Xorg')?
Do I get this right, the Puppy X server works on the same hardware? I believe they use an older version of Xorg, but it would not harm to take a look at their '/var/log/Xorg.0.log' to compare and maybe (if used) their '/etc/X11/xorg.conf'. You might as well attach those files here.
I also had a quick look at this
ThinkWiki page and our kernel is not build with all the reported settings. So this might be another area to consider, but I'm not in a position to judge whether it is worth the effort to build a new kernel.