The awkwardly named Asus Eee laptop, which was originally supposed to drop in August for a mere $199, is finally now available here in the States for a doubly-high price of $399 at NewEgg. Not that $399 is a terrible price for a compact, low-end laptop with a slick custom Linux OS; if you're looking for a cheap travel computer or a first PC for grandma, this looks to be a great choice. [Product Page via i4u]
@aussie: The Eee PC is not as rugged, not as low-powered, doesn't have the mesh network, won't be as readable in sunlight, etc. And the OLPC XO is still cheaper if you want a comparable feature set.
BUT, I bet the Eee PC can run much of the innovative software stack that OLPC developed for the XO, maybe down to the energy-saving kernel and reliable update firmware, so it could indeed be a useful alternative.