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David Braben, an UK game developer has created a tiny computer which is about the same size as an USB stick, should cost about $25 and it will ship with Ubuntu by default.

USB computer Ubuntu
(The USB computer running Ubuntu 9.04)

The USB computer is going to be used in teaching computer programming to children and will be distributed by a new charitable foundation called "Raspberry Pi Foundation" within the next 12 months.

25 dollars PC

The USB computer comes with an HDMI and an USB port so you just plug it into a TV or some other device that has an HDMI socket, connect a keyboard via the USB port and get a fully-configured system.

Sure, the system is not so cheap if you buy a keyboard, mouse and a monitor, but you can find a lot of cheap used monitors, etc.

System specs:
  • 700MHz ARM11
  • 128MB of SDRAM
  • OpenGL ES 2.0
  • 1080p30 H.264 high-profile decode
  • Composite and HDMI video output
  • USB 2.0
  • SD/MMC/SDIO memory card slot
  • General-purpose I/O

For more info, see the video below:

Raspberry Pi Foundation homepage

Update: Raspberry Pi can now be purchased from HERE.

Thanks to Rodislav Moldovan for the tip; Info via Geek.com