Funnily enough, yes - extensively.
[root@shlv4-dc7800u ~]# dmidecode | grep 7800
Product Name: HP Compaq dc7800 Ultra-slim Desktop
[root@shlv4-dc7800u ~]# uname -a
Linux shlv4-dc7800u 2.6.18-53.el5xen #1 SMP Wed Oct 10 16:48:44 EDT 2007 x86_64 x86_64 x86_64 GNU/Linux
Although that one is running the Xen kernel, it has a problem that the first USDT models we bought had E4500 CPUs which are not VT capable. This isn't a problem on the SFF or CMT models, only the early Ultra-Slim Desktops.
We've run it on SFF models and USDT models, I haven't tried a CMT personally but I wouldn't expect it not to work, the only thing you might not get working is the optional card reader, but I haven't checked.
--
Sam