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Tunkey based on Ubuntu Server or JeOS?
Just wondering because of the size of the iso.
Also, are Turnkey releases only based on the latest LTS version of Ubuntu?
If so, does that mean sometime after April Turnkey will be updating all their VMs to LucidLynx?
TKL is loosely based on Ubuntu Server 8.04.3 (so not quite latest version of LTS) the next release will follow after 10.04 LTS final is available.
Whilst TKL is based on Ubuntu Server it is pared back a bit and is pretty minimal. Each appliance has pretty much just what it needs, but there is some added functionality too, like ssh, sftp, Webmin, shellinabox, etc all available by default. There are some other differences too, for example it can run live from a CD or ISO (if in a VM) unlike standard Ubuntu Server. It also uses the standard desktop kernel rather than the server one (more stable in a range of VM environments).
TKL Core is the base for all appliances (and is a great Dev environment in its own right if you want to build your own). The appliance page gives a pretty good rundown.
Have fun!