I mount my rootfs using nfs at the boot time using the instructions given in
the book "building embedded Linux Systems" by Karim Yaghmour.
my bootargs is set as
mem=64M console=ttys0,115200 root=/dev/nfs rw nfsroot=10.1.0.43:/tftpboot/rootfs ip=10.1.0.44
There is an advantage of mounting the rootfs using nfs as I donot need to flash the new softwares to the nandflash, of course the same is in your case.
I just build the softwares using bitbake and copy the .ipk file to the mounted rootfs
folder on my pc. This way it also gets reflected on the rootfile system of the board
and I install it using the ipkg command.
you can do one thing download the software you want to install from the
http://www.angstrom-distribution.org/repo/
copy it to a pen drive, attach the pen drive to your board and mount it
to install .ipk package the command is
ipkg install <package name>
for more info. on ipkg refer
http://handhelds.org/moin/moin.cgi/Ipkg?action=highlight&value=Ipkg