USB peripherals
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The Lending Library
The OLPC only has 512 megabytes of storage for Ebooks and other content. But CD-ROMs are cheap and could be used to distribute entire libraries. All you need to run a lending library is a stack of CD-ROMs and one or more USB CD-Readers.
CD-ROM
Probably one of the first extension or add-on that people think about for the laptop is the CD-ROM.
As any USB compliant device supported by Linux, they should work just fine. In that sense (USB 2.0 standard compliance) also means that any CD-R/W, DVD-R/W (and other letter combinations) should also work.
USB CD-ROMs are not as cheap as one may expect