OLPC talk:What we mean by free and open
To make changes to the installed software (including the os), you will need the source code and a compiler. Fitting even an undressed Linux kernel, some GNU stuff including gcc on a 128+512MB computer does not leave much room for other stuff. Infact it will not fit at all, unless really drastic steps are taken. The only thing that would be Open Source (even free as in beer) and small enough would be MINIX. Maybe there are some new experiments, but MINIX has proven it self (esp. on small machines in Eastern Europe, Asia and to some extend Africa). The original MINIX ran off a 360KB floppy, and early Linux was modeled (and developed on) MINIX. Also MINIX creator professor Tanenbaum is from the MIT, so he probably will be happy to help.
Since a major overhoal of MINIX is currently onderway, (see www.minix3.org[1]) development efforts could be bundeled. Someone should research this.
Retrieved from "http://wiki.laptop.org/wiki/OLPC_on_open_source_software"
Media Inaccuracies regarding olpc and F/LOSS
FWIW, there was an article at MobileMag that claimed:
The OLPC is still being planned to run on a variant of Windows (CE), because according to Negroponte, Linux in its current incarnation is still too "bloated."