This video from Microsoft is the stuff of many an open source enthusiast’s nightmares… It’s Windows XP (and Office) running on the OLPC XO, a low cost, Linux-based laptop designed for developing nations. Not only does the cost of licensing the OS push the laptop’s price up to $200, which is twice it’s original target price, but I also can’t quite see why impoverished schoolkids living in third world conditions have any need for Excel.

As a result, Walter Bender, developer of the system’s Sugar UI, has announced that he will be setting up a separate company to continue development of the education-oriented interface independent of the OLPC project. He will now be concentrating on getting the system onto other budget laptops, such as the Asus Eee.

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