Although the website and forums are up, xPud hasn't been updated since 2009. The forums are also dead (some activity in 2011, a single post in 2012). I remember running xPud during my netbook days (I settled on Puppy) but I thought it showed promise. I envisioned a kiosk-type system for the non-tech savvy - helpful UI for these kinds of users too.

Given the security issues with any OS that isn't being actively work on (much less one that saw it's last update 7 years ago), it's probably not a good idea to run it online.