Initially Microsoft showed little interest in the One Laptop Per Child (OLPC) project until the orders started to pour in. The thought of all those laptops going to developing countries (and even Alabama school districts) sans a Windows OS seems to have made an impact.
As soon as MS saw how many sales they were passing up, they decided that they'd develop a variant of XP specifically for the OLPC and its limited storage capacity. Then we heard that there might be a dual-boot setup in the works, and now this:
“Microsoft is not developing dual-boot Windows XP support for One Laptop Per Child’s XO laptop."
Perhaps we'll just have to wait a while to find out, but it does seem a bit odd that the Redmond Giant would invest any effort in supporting a dual-boot configuration. Only time will tell.