[Android Software/Hacking General [Developers Only]] palswim:
If you already have shell access to your device and don't want to connect via ADB, I modified the script to have the ability to run directly on your device (your device will need at least a functional wget executable already, which I had from SSHDroid):

# OPTWARE_DIR is where to install optware, it should be on a partition with
# normal Unix filesystem (permissions, etc.)
OPTWARE_DIR=/data/opt

# Particular field to install from, stable by default
FEED=http://ipkg.nslu2-linux.org/feeds/optware/cs08q1armel/cross/stable

# DO NOT edit anything below this line unless you know what you are doing

start_script=start.sh
cs08q1_url=https://sourcery.mentor.com/sgpp/lite/arm/portal/package2549/public/arm-none-linux-gnueabi/arm-2008q1-126-arm-none-linux-gnueabi-i686-pc-linux-gnu.tar.bz2
cs08q1_fname=$(basename $cs08q1_url)
libc_path=arm-2008q1/arm-none-linux-gnueabi/libc
libc_libs="lib/ld-2.5.so ld-linux.so.3 \
lib/libc-2.5.so libc.so.6 \
lib/libm-2.5.so libm.so.6 \
lib/librt-2.5.so librt.so.1 \
lib/libpthread-2.5.so libpthread.so.0 \
lib/libresolv-2.5.so libresolv.so.2 \
lib/libdl-2.5.so libdl.so.2 \
lib/libnss_dns-2.5.so libnss_dns.so.2 \
lib/libutil-2.5.so libutil.so.1 \
lib/libgcc_s.so.1 libgcc_s.so \
lib/libnsl-2.5.so libnsl.so.1 \
lib/libcrypt-2.5.so libcrypt.so.1 \
lib/libBrokenLocale-2.5.so libBrokenLocale.so.1 \
lib/libanl-2.5.so libanl.so.1 \
lib/libcidn-2.5.so libcidn.so.1 \
lib/libnss_compat-2.5.so libnss_compat.so.2 \
lib/libnss_files-2.5.so libnss_files.so.2 \
lib/libnss_hesiod-2.5.so libnss_hesiod.so.2 \
lib/libnss_nis-2.5.so libnss_nis.so.2 \
lib/libnss_nisplus-2.5.so libnss_nisplus.so.2 \
lib/libthread_db-1.0.so libthread_db.so.1 \
"

#
# On-target (device) commands
#

t_cp () {
# copy file on a device
cat $1 >$2
}

t_cd_ln () {
local dir=$1
shift
cd $dir; ln $*
}

t_ln () {
ln $*
}

t_chmod () {
chmod $*
}

t_mkdir_p () {
# This doesn't complain if dir exists, but can't create intermediate dirs
ls $1 >/dev/null 2>&1 || mkdir $1
}

t_rm_f () {
# Doesn't complain if file not there
ls $1 >/dev/null 2>&1 && rm $1
}

t_rm_rf () {
# Doesn't complain if dir not there
ls $1 >/dev/null 2>&1 && rm -r $1
}

t_remount_rw () {
mount -o rw,remount $1 $1
}

t_remount_ro () {
mount -o ro,remount $1 $1
}

extract_libc () {
if [ ! -d $(echo $libc_path | sed -e 's%/.*%%') ]; then
echo Extracting $cs08q1_fname
tar xjf $cs08q1_fname $list
fi
}

install_system_lib () {
local f=$(basename $1)
echo "Installing system lib: $f"
t_cp $libc_path/$1 /lib/$f
t_chmod 0755 /lib/$f
t_ln -s $f /lib/$2
}

install_system_bin () {
local f=$(basename $1)
echo "Installing system bin: $1"
t_cp $libc_path/$1 /bin/$f
t_chmod 0755 /bin/$f
}

install_libc () {
while [ -n "$1" ]; do
local lib=$1
shift
local symlink=$1
shift
install_system_lib $lib $symlink
done
}

install_bin () {
echo "Installing /opt/bin/$1"
t_cp opt/bin/$1 /opt/bin/$1
t_chmod 755 /opt/bin/$1
}

install_ipkg () {
t_mkdir_p /opt/bin
t_mkdir_p /opt/lib

install_bin ipkg

t_cp opt/lib/libipkg.so.0.0.0 /opt/lib/libipkg.so.0.0.0
t_ln -s libipkg.so.0.0.0 /opt/lib/libipkg.so.0
t_ln -s libipkg.so.0.0.0 /opt/lib/libipkg.so
}

fetch_package_index () {
if [ ! -f Packages ]; then
echo "Downloading Optware package index"
wget -q $FEED/Packages
else
echo "Using cached Optware package index"
fi
}

get_package_fname () {
awk "/^Filename: ${1}_/ {print \$2}" Packages
}

fetch_package () {
if [ -z "$1" ]; then
echo "Unexpected error: package '$1' not found in index"
exit 1
fi
if [ ! -f "$1" ]; then
echo "Downloading Optware package $1"
wget -q $FEED/$1
else
echo "Using cached package $1"
fi
}

fetch_toolchain () {
if [ ! -f $cs08q1_fname ]; then
echo "You need CodeSourcery ARM-Linux toolchain release 2008q1: $cs08q1_fname"
echo "if you have this file on your system already, press Ctrl-C now and copy"
echo "it into the current directory. Otherwise, press Enter to download it (65MB)."
read
wget $cs08q1_url
fi
}

optware_uninstall () {
t_remount_rw /
t_remount_rw /system
rm -r $OPTWARE_DIR
rm /lib
rm /bin
rm /opt
rm /tmp
t_remount_ro /
rm /etc/resolv.conf
rm /etc/mtab
rm /etc/passwd
rm /etc/group
t_remount_ro /system
echo "Optware sucessfully uninstalled"
}

#
# Main code
#

if [ "$1" == "" ]; then
echo "This script installs NSLU Optware on an Android device connected using ADB"
echo "Usage: $0 install|uninstall"
exit 1
fi

if [ "$1" == "uninstall" ]; then
optware_uninstall
exit
fi

fetch_toolchain
fetch_package_index
ipkg_fname=$(get_package_fname ipkg-opt)
wget_fname=$(get_package_fname wget)
busybox_fname=$(get_package_fname busybox-base)
fetch_package $ipkg_fname
fetch_package $wget_fname
fetch_package $busybox_fname

t_remount_rw /
t_remount_rw /system

# Start from scratch
echo "== Initializing optware environment =="
t_mkdir_p $OPTWARE_DIR
t_ln -s $OPTWARE_DIR /opt

t_mkdir_p $OPTWARE_DIR/rootbin
t_ln -s $OPTWARE_DIR/rootbin /bin

t_mkdir_p $OPTWARE_DIR/rootlib
t_ln -s $OPTWARE_DIR/rootlib /lib

t_mkdir_p $OPTWARE_DIR/tmp
t_ln -s $OPTWARE_DIR/tmp /tmp

t_mkdir_p $OPTWARE_DIR/home
t_mkdir_p $OPTWARE_DIR/home/root
t_mkdir_p $OPTWARE_DIR/home/user

echo "== Installing libc =="
extract_libc
install_libc $libc_libs
install_system_bin usr/bin/ldd

echo "== Installing bootstrap ipkg =="
rm -rf opt
tar -xOzf $ipkg_fname ./data.tar.gz | tar -xzf -
install_ipkg

echo "== Installing bootstrap wget =="
rm -rf opt
tar -xOzf $wget_fname ./data.tar.gz | tar -xzf -
install_bin wget

echo "== Installing bootstrap busybox =="
rm -rf opt
tar -xOzf $busybox_fname ./data.tar.gz | tar -xzf -
install_bin busybox

echo "== Initializing bootstrap /bin =="
# We need sane shell as /bin/sh
t_ln -s /opt/bin/busybox /bin/sh
# We need minimal set of sane shell commands to run update-alternatives
# script to properly (re)install busybox itself
t_ln -s /opt/bin/busybox /bin/echo
t_ln -s /opt/bin/busybox /bin/rm
t_ln -s /opt/bin/busybox /bin/rmdir
t_ln -s /opt/bin/busybox /bin/sed
t_ln -s /opt/bin/busybox /bin/mkdir
t_ln -s /opt/bin/busybox /bin/head
t_ln -s /opt/bin/busybox /bin/sort
t_ln -s /opt/bin/busybox /bin/dirname
t_ln -s /opt/bin/busybox /bin/ln
t_ln -s /opt/bin/busybox /bin/mv
t_ln -s /opt/bin/busybox /bin/cat
t_ln -s /opt/bin/busybox /bin/chown
t_ln -s /opt/bin/busybox /bin/chmod
# gzip and tar should be part of Android, but there were reports
# that some implementations may be broken
t_ln -s /opt/bin/busybox /bin/tar
t_ln -s /opt/bin/busybox /bin/gzip

echo "== Configuring package feed =="
t_mkdir_p /opt/etc
t_mkdir_p /opt/etc/ipkg
echo src cross $FEED >/opt/etc/ipkg/feeds.conf

echo "== Configuring domain name resolution =="
echo nameserver 8.8.8.8 >/opt/etc/resolv.conf
# On a normal Android system, /etc is symlink to /system/etc, but just in case...
t_mkdir_p /etc
# but for normal system, we need to remount /system
t_rm_f /etc/resolv.conf
t_ln -s /opt/etc/resolv.conf /etc/resolv.conf

echo "== Configuring GLIBC Namespace Switch =="
t_cp nsswitch.conf /etc/nsswitch.conf
t_chmod 0644 /etc/nsswitch.conf

echo "== Configuring /etc/mtab =="
t_ln -s /proc/mounts /etc/mtab

echo "== Configuring users =="
echo root:x:0:0:root:/opt/home/root:/bin/sh >/opt/etc/passwd
echo shell:x:2000:2000:shell:/opt/home/user:/bin/sh >>/opt/etc/passwd
t_ln -s /opt/etc/passwd /etc/passwd

echo "== Configuring groups =="
echo root:x:0:root >/opt/etc/group
echo shell:x:2000:shell >>/opt/etc/group
t_ln -s /opt/etc/group /etc/group

echo "== Creating optware init script =="
echo '#!/system/bin/sh' >/opt/optware-init.sh
echo 'ls /opt >/dev/null 2>&1 && exit' >>/opt/optware-init.sh
echo echo Reinitializing optware rootfs links >>/opt/optware-init.sh
echo mount -o rw,remount rootfs / >>/opt/optware-init.sh
echo ln -s $OPTWARE_DIR /opt >>/opt/optware-init.sh
echo ln -s $OPTWARE_DIR/rootlib /lib >>/opt/optware-init.sh
echo ln -s $OPTWARE_DIR/rootbin /bin >>/opt/optware-init.sh
echo ln -s $OPTWARE_DIR/tmp /tmp >>/opt/optware-init.sh
echo mount -o ro,remount rootfs / >>/opt/optware-init.sh
t_chmod 0755 /opt/optware-init.sh

echo "== Creating optware startup script =="
echo '#!/system/bin/sh' >/opt/$start_script
echo 'ls /opt >/dev/null 2>&1 ||' su -c $OPTWARE_DIR/optware-init.sh >>/opt/$start_script
echo '# You may want to add /opt/local/bin to PATH below' >>/opt/$start_script
echo export PATH=/opt/sbin:/opt/bin:/bin:/system/bin >>/opt/$start_script
echo 'if busybox test $(busybox id -u) = 0; then HOME=/opt/home/root; else HOME=/opt/home/user; fi' >>/opt/$start_script
echo export HOME>>/opt/$start_script
echo export TMPDIR=/tmp >>/opt/$start_script
echo umask 022 >>/opt/$start_script
echo /bin/sh >>/opt/$start_script
t_chmod 0755 /opt/$start_script
# Create "s" symlink to ease typing on touchscreen devices
t_ln -s $start_script /opt/s

t_remount_ro /

echo "== Reinstalling bootstrap packages =="
echo "Make sure that your device is woken up and connected to the Internet"
echo "Press Enter to continue"
read
#
# Now that we have all dependencies to run ipkg bootstraped on device,
# we need to use ipkg to reinstall itself and all those dependencies,
# to make sure they're installed and configured properly.
#
PATH=/opt/bin:/bin /opt/bin/ipkg update
PATH=/opt/bin:/bin /opt/bin/ipkg install ipkg-opt
PATH=/opt/bin:/bin /opt/bin/ipkg install wget
PATH=/opt/bin:/bin /opt/bin/ipkg install busybox

echo "== Cleaning local directory =="
rm -rf opt arm-2008q1

t_remount_ro /system

echo "Optware for Android installation complete."
echo "To start optware session, execute $OPTWARE_DIR/$start_script (aka $OPTWARE_DIR/s) on the device"
echo "Also, make sure you have mounted whichever partition contains Optware as rw when you execute an update"

pfalcon, let me know if you want me to add any license headers to this.