Sure. First thing to do is head over to
www.nslu2-linux.org and download a new firmware. I chose the unslung firmware, because it has a lot of preconfigured packages available called optware. You will have to set up a primary HDD to host your linux filesystem. I had to telnet into to the box to complete the configuration, but I believe you can setup ssh if you want. You can have multiple partitions on the disk, so you can still use it for storge too. The slug will maintain it's full functionality, just that it would have more features available. It's definetely worth it to unsling your slug, because the only real limit as to what you can do with it is your own imagination. It basically turns your slug into a fully functional linux box. It's a little bit techy to get it up and running, but if you make sure to read all the documentation carefully, you should get on ok.