@Daniel you can develop and compile Android under VMWare/VirtualBox/etc. If you ask around the forum for kernel developers, they might be distributing virtual machine images preconfigured for kernel development (i.e. with ARM cross-compiler, JDK, adb, all set up). Samdroid distributes a VMWare image ready for Samsung Spica i5700 kernel development:
forum.samdroid.net/f9/… which you might be able to repurpose for your device.