You need the development image and qemu with kqemu.
If you want you can pinch those scripts and you should be good to go.
start_olpc.sh
#!/bin/bash
su -c ./su_ops.sh && qemu -m 256 -kernel-kqemu -soundhw es1370 -net user -net nic,model=rtl8139 -redir tcp:2222::22 -hda olpc-redhat-stream-development-devel_ext3.img
su_ops.sh
#!/bin/bash
rmmod rtc_cmos
modprobe rtc
#optimiser
modprobe kqemu
#virtual memory
umount /dev/shm
mount -t tmpfs -o size=272m none /dev/shm
echo 1024 > /proc/sys/dev/rtc/max-user-freq