I'm struggling with a similar install of Woody on a Quadra 700. I found that the kernel file and penguin are on the 1st woody cd but you have to dig down into some folders to get there. The process varies a bit from the potato procedure which is better documented (a mac-specific install document on www.mac.linux-m68k.org). I just had to wade through the woody document http://www.debian.org/releases/woody/m68k/install.en.html and that got me almost all the way there.
The one undocumented problem I solved was that /dev/cdrom was a symbolic link to /dev/sr0, but there was no /dev/sr0 (or /dev/scd0 either). I figured out that I had to switch to the shell screen, type cd /dev and MAKEDEV scd0. This allowed the installer to see the cdrom and install the base system. I'm currently struggling with the onboard ethernet (sonic) on the Quadra 700. It seems I really have to hold down a shift key when booting the Mac; disabling extensions with Extension Manager does not seem to have the same effect. This is a problem because I want to run the Quadra without a keyboard attached.
