I found this article from Digg, telling about a $100 PC developed in Philippines.
Developed by University of the Philippines Los Banos Development and Management Professor Rufino Mananghaya, the budget PC uses a Taiwanese mini-motherboard with 256 megabytes of memory and integrated with a Via C3 800 megahertz processor.
Instead of a hard disk, this budget PC uses a memory card adapter that allows it to use a Compact Flash card. The PC is not encased in solid metal; it is fixed in a 50-peso transparent plastic briefcase that can be bought in school supply shops.
“œThis computer uses Puppy Linux, which only requires less than 50 MB of memory. Then it has Open Office as a cost-effective alternative to proprietary desktop applications. Both software run in less than 128 MB of memory but the card’s adapter can accommodate cards with up to 2 gigabytes,” Mananghaya said.
Take that, Negroponte!