First some background:

I'm developing a piece of software that will ultimately be running on
low-end PC hardware - basically a bare-bones motherboard with
integrated everything, 128mb of ram, video and ethernet and cheap x86
CPU. My first question is, can I run windows CE on hardware like that?
The documentation seems sort of unclear. It seems like the CEPC x86
BSP should work for this but I can't tell.

Because the company I work for is under a tight budget, we want to use
a spare PC we have that isn't currently being used for anything else.
It's got a pentium 4 processor, intel motherboard, built in ethernet
and video, etc. I went through the tutorial included with the Windows
CE 5.0 development software/SDK titled "Building a Run-Time image for a
CEPC". I can get through most of it but when I get to "Step 4: Setting
up a connection to the CEPC and Downloading the Run-Time Image", I am
unable to get the PC to download or boot the run-time image I created
in the previous steps. The boot disk seems to be working fine.
The problem seems to be that the PC does not appear in the available
devices list in Platform Builder. I'm not sure where to go from here
and I can't find any information. When the Target PC boots up, I
select menu option 3 "Boot CE/PC (ether via eboot bin) with 800:600:16"
or something like that and then it starts doing some stuff and then it
ends with a black screen that has the text "Jumping to 0x0013A388" in
the upper lefthand corner and nothing else.

Any ideas on what I'm doing wrong or suggestions as to where to go from
here?

-Shane