At first things were kind of slow and laggy, then I stumbled across on another forum by Toni who was suggesting to use the SCSI accelerator option and wow what a difference, boots almost like a real machine.
Becomes are very useable machine, might sell the Peg2 after all :-)
Fast = Yes
Network = Yes
So ignore all the how tos/guides that suggest using IDE as this is really really slow and painful, follow them but choose SCSI accelerator instead of IDE.