Yes, that's Windoze XP on my XO laptop. Click on the image for a larger version. The resolution doesn't quite match the XO screen's native resolution. Minor detail.
OK, so it's not running directly on the XO hardware. It's running on a KVM virtual machine.
And actually, that's not running on the XO hardware either. It's running on my Core 2 Duo machine that runs Ubuntu. What's running on the XO is an ssh client, an X server, and some good wifi networking. The XO makes a sweet little thin client.
So, um, nothing really to see here. Sorry if I got anyone's hopes up. Or fears.