Wal-Mart is now carrying a desktop PC for $199. Its specs may not seem very impressive compared to other new units (still better than my current rig!), but it doesn't need fancy hardware to run its operating system - "gOS", a flavor of Linux. (It looks somewhat like Mac OS X)

If you want to run Microsoft Windows Vista Home Basic on it, it'll cost around $220 to do so, between buying the Windows license and an extra 1GB of ram. (Though Windows XP would run great on it without a RAM upgrade)

It seems like the perfect PC for someone who needs basic web, email, and productivity. Just don't try installing Windows apps while running gOS...

1.5 GHz Via Technologies C7-D processor

Ok for speed but unknown if it can be replaced by a AMD or MS chip? (custom motherboard)

On the Plus side it is a very low power consumption chip
But as you can see the this chip is geared towards Linux users on this page www.linuxdevices.com/news/NS8508116370.html

Conclusion Ok for a few basic games and Office work..
Have to fork out $299 for this companies Vista version and again there are going to be big compatibility issues if you ask too much of it

IIRC, the board is a standard Mini-ATX board with a Via chipset. (Designed to fit in a toaster, but they just stuck it in a standard size tower) I'm not sure what socket the C7-D takes.

The board likely doesn't have the physical real estate for the cooling equipment of an Intel or AMD. (Intel/AMD nuse around 65W, the Via C7-D between 2W to 20W. Huge heat difference!)

Walmart has a $299 version with Vista Basic on it, but no additional RAM. I feel sorry for anyone who buys it... Vista sucks without at least a gig of RAM.

If you're gonna go this cheap, the $199 Linux box is the only tolerable option.

The only thing I can see on the Web is that this Processor is an Intel clone. Wouldn't risk it in a genuine Intel Chip Motherboard
If it breaks get a proper board and Chip ect

For just over $100 you can buy a motherboard bundle Pre assembled which will drop into the Case Connect up and is upgradable (albeit a small amount)

So If I was to buy this or the other version I'd use it as a base to build on and improve
If the Case and Power supply unit could cope.

My other Machine which is awaiting repair(in the New Year) Has some parts dating back almost to the Windows 3.1/Win 95 era or earlier

Looked up the C7 on Wikipedia. It takes a socket 479, which makes it pin-compatible with the Pentium-M line.

I wouldn't call it a knockoff, as it is a unique chip design. But it does qualify for the title of distant third-place runner in the CPU race.