Here is a video of a $98 laptop running Linux. And no it is not the OLPC. This is a laptop currently in production in China and which purportedly runs a Chinese Linux distribution. It has similarities in dimensions and features of the Asus eeePC. Check out the following video to learn more.

The laptop is manufactured by HiVision and uses a new cheaper MIPS based processor. It has WiFi, 1 GB of storage, 3 USB ports, Ethernet,  audio in and out and a SDHC card reader.