Install Android directly on the Kaiser's NAND and underclock (yes, underclock) the phone via Roguetools. There are whole threads explaining the benefits of installing on NAND.
And I say underclock because you really aren't needing Android to run as fast as possible, just fast enough to transfer the data across the USB.
Development device (still running strong)
AT&T Tilt/HTC Kaiser 160
Fresh Froyo 8/29/11
Scoot's 184.108.40.206 N50Vc Kernel
Samsung SGH-i997 Infuse 4G, Some form of CM10.1