I don't know all that much about it, except that it's a fairly minimal machine, of course all you're paying for is the hardware. However this shouldn't be too much a problem since Linux doesn't require the resources that XP does, so I would think it would perform fairly well for a low end machine. It comes with an office suite (word processor, spreadsheet, presentation software etc), and all the other stuff people expect from a new computer, but you're not paying any hidden fees for that software.
Buying a computer with MS XP professional edition (which is closer to Linux than is MS Home edition) adds somewhere between $100 and $150 to the total cost. Add in the office suite, and there's another say, $100. So, it's the fiscal equivelent of say a $500 computer, however, in terms of capability, it's probably actually closer to a $800 XP machine. What you mainly give up is a lot of the glitzy stuff that comes with XP, and the ability to run most programs written for Windows.
Now we should probably get back to discussing things that rust.
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Don