Man, I messed that post all up! Thank you for correcting my Debian mind wipe.
I want to run testing (Squeeze) not unstable (Sid) because I find that stable gets a bit too long in the tooth for me and I rely on more up-to-date packages (Ruby 1.9) for my stuff. I don't really want to run my own kernel, too much danger down that path.
What I think I need to do is install Debian 5 (stable), upgrade it to Squeeze (via apt sources.list) and use it as normal. If I go down this road are there any Linode special things I have to worry about? Kernel modules? XEN upgrades? etc...