I really have no idea how hard they are to create.... but a linux live cd image or a virtual appliance would be nifty. I’m interested in trying out Magento and would eventually install on my own, but for the early stages it would certainly help people get a good look at it without as many newbie apache questions.
BTW - Congrats on birthing a really exciting piece of software!
this would be a really handy thing for you guys to do as it will allow potential customers to use the software on a preloaded\configured VM, instead of someone setting up their own VM and dealing with all the issues of installation. All you need to do is build a linux or windows VM with magento installed on VMWare workstation or VMWare Server (Free) and submit it to vmware virtual applicance website.
Given the ongoing problems people have with installing a test version of Magento, I think there’s absolutely great scope for a well-maintained Virtual Appliance. When optimized well (OS, webserver, PHP and MySQL tweaked for optimum Mage performance) it’s a real good showcase. If fewer people fall at the first hurdle, the uptake will increase even more.
Heck, you could even make decent money by offering such a VA.