Also worth reading is this item from linux.com. It gives a nice overview of how the device operates. Incidentally, I have an earlier version of the OLPC's OS, Sugar, running in the emulator qemu on a Linux laptop. From the two articles that form the basis of this item, I would judge that kids have no issues with using Sugar, and that posts such as this one are misguided. The standard conventions of the typical PC desktop environment are not actually intuitive, as anyone who has tried to get someone who genuinely has no computer experience up and running with a relatively modern computer will know.
More about the OLPC!
P.J., who runs the famous blog site Groklaw, has received her OLPC (those lucky enough to live in , or have an address in, North America can order one on a "buy one, give one" arrangement), under the most exciting circumstances, as she relates in Groklaw today. The pictures of the kids with their OLPCs are great!