Michael Shurter has made an extensive blog about setting up a Debian server with Moodle.
Read it here
A teacher e-mailed me the other day wondering if I could setup a server with Moodle on it for him to test. I was overjoyed at the request because the teacher had discovered Moodle, MySQL, PHP, and Linux (as well as their freeness) all by himself!
I used the Debian Etch Net Install Daily Image for today (1/25/2007), and everything went pretty smoothly.