My honest suggestion if you're interesting in making a standard version of linux is to use a virtualization platform to do so. It offers a lot of benefits and from the ground up you're already running the way you plan to be running in the long run. There is no reason you can't do a distribution from scratch there either.
To do it from colinux you'll likely need to boot a livecd, rsync the data over to the system, install a non-colinux kernel, install grub, configure each and reboot into the system. In addition you may or may not have to recompile a significant number (or all) of your applications. Colinux is a nice way to use linux but at the same time it's less conducive to writing a non-colinux distribution from scratch imo.
Last edited by rweaver; 03-08-2010 at 11:37 AM.