Yea, e17 (enlightenment) is my WM of choice as well. Once we have our default themes imported in and a base menu configuration we will make it the default cAos WM. It also works very well on older hardware.
Have you tried to run the Enlightenment login manager? You mentioned KDM, but Entrance is really slick. Problem is that if there is anohter WM loaded I have seen a bug where it loads other WM's before enlightenment. My recommended fix is to remove other WM's and get all of the enlightenment package group:
# yum groupremove kde gnome gnome-extras
# yum groupinstall enlightenment desktop
should do the trick

Then set your default run level to 5, and Entrance should boot up.
The version of Xorg that cAos comes with doesn't require a config file. If you need to generate one, type: 'X :1 -configure' as root, and then check /root/xorg.conf.*. Move that to /etc/X11/xorg.conf and edit your modes.
Hope that helps out!
Also, feel free to jump on the email list or IRC channel. Lots of help there too.