If anyone is interested I can post the steps and scripts I used, so you can do it yourself, and learn as you do it which is fun lol.
Most of the information is available via google searches however some things are not mentioned.
I have almost got LXDE running in the chroot without vnc, however not fully.
The problem I am having is when I startx or xinit /usr/bin/lxsession it displays a blank screen. When I kill the process, the LXDE background displays with a cursor. Not sure why it waits to display when I kill the process kind of weird.
Anyways thoughts, comments, constructive criticism.