From Slashdot Walmart now sells sub-$500 (USD) notebooks. The don't run Windows, because of the cost of the OEM license, they run Linspire, a Linux based operating system. It is not a fast laptop as VIA-C3 1GHz CPU is not really snappy, but it is decent for most people use.

They also have more expensive models with faster CPUs include AMD Athlon, inlcuding one 50$ more expensive, with wireless and Window XP Home (sigh). The makes me think that the sub-$500 notebook is just overpriced, but under the $500 barrier.

So I wonder what is the real justification of using Linspire ? Because it just cost less enough to bring the price down under $500 ? I don't think, given that the XP license is something around $100, they could have done it on the other laptop as well, as well as stripping out wifi. And they would provide Linspire on the other models as well.