Like ASUS needed more competition for their Eee PC, Intel is going have their own classroom PC that retails for $400.  Specifications look pretty familiar and it will be using Windows XP, a step over the embedded Linux that ASUS has used up until now.

Intel to sell $400 classroom notebook - Mobile 2
The 2go features an Intel Celeron M CPU on top of the 915GMS chipset, 512MB of RAM (upgradeable to 1GB), a 9-inch, 800 x 480 LCD display, 40GB hard drive, 802.11b/g, SD / MMC reader, and a full complement of standard ports and jacks. The systems natively run XP (though Linux appears to be an option), feature a VGA webcam, and are expected to go about three hours between full charges. Our contact says these will be on shelves in less than 60 days, and will retail for around $400.