I recently tried Knoppix.What
KNOPPIX is a bootable Live system on CD or DVD, consisting of a representative collection of GNU/Linux software, automatic hardware detection, and support for many graphics cards, sound cards, SCSI and USB devices and other peripherals.
It just simply works great. I have tried several other linux distros Slackware, Mandrake, Meentoo etc but all failed to detect one or another hardware device on my PC. Sometimes network card, mouse, USB etc etc but Knoppix detected everything and was able to connect to my Router without any configuration at all. It has all the latest stuff such as Skype, Gaim, FireFox etc that I use.
Knoppix is highly recommended who is looking for an easy to setup Linux distribution.