The MIT Media Lab is currently working on a $100 laptop for children in developing nations. Nicholas Negroponte, Media Lab’s founder believes that by eliminating profits, expensive displays, and commercial software, he can build a laptop for less than $100.
As read in the FAQ, [t]he idea is to distribute the machines through those ministries of education willing to adopt a policy of “One Laptop per Child.” Initial discussions have been held with China, Brazil, Thailand, and Egypt.
The specs are not extraordinary (a 500 MHz processor, 1GB hard disk space, 1 Megapixel display (1024×768 I suppose)) but the laptops are WiFi- and cellphone-enabled (Bluetooth I suppose) and have many USB ports.
And they run Linux!!!