So it's *actually* running on the XO?

It's been pointed out in a few different places that an earlier 'photo' of Windows XP running on the XO was a fairly crude photoshop job. The 'desktop' is square right to the corners and slightly overlaps the borders of the screen. Microsoft would probably argue that they only did this to get better screen contrast or whatever, but I've taken photos of an XO myself and the screen contents came out wonderfully clear.

The video of XP running is also a little suspect; no apparent drive activity a lot of the time (that could just be because it's not running from the inbuilt flash memory) and the camera light is off when they're using the inbuilt camera. I could believe the lack of drive activity, but we know the camera LED is hard-wired so the camera can't operate without it lighting. It's a design feature.

Anyhoo, If they've slimmed it down I can imagine it runs well enough after a fresh install, I've used XP on some fairly low-spec machines and it's not all that bad. But just wait until you install antivirus software or wait a few months for the crud to build up..