In particular, I am considering running a minimal distro (maybe ttylinux) within Qubes. I understand that Qubes can run each OS component and application within a separate VM but how about an entire OS?
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Qubes uses the Xen hypervisor under the hood so anything that you can do with Xen is likely possible in Qubes. Creating an HVM is strait forward for most any x86 compatible OS, but the integration with the desktop may not be as good as other OS's that are already being directly supported.
For instance, I just created an HVM running Android-x86.org. It was running Ok but somehow I messed something up and I don't have time to mess with it right now. I was just trying to see if it could be done, and the answer is yes.
Just look in the docs for how to install an HVM from and iso. its pretty straight forward once you know how. have fun.