I would like to know who these guys are and did this force IBM's hand:
http://www.walmart.com/catalog/product.gsp?product_id=3163026
Now that is new to me..... must be their name for the AMD Semptron......likely made in China...or Taiwan and may be running Xandros Linux as opposed to Windows.....
Cheap computers have always been available at Costco, Walmart, and other outlets. I doubt that this will be going head-to-head with IBM, which is a pretty fancy expensive machine. Their chief competitor is probably Dell, which also sells a lot to corporations. HP threatened IBM for a while but has pretty well wrecked its reputation. Same with Gateway.
I use all Dells. IMHO IBM just doesn't offer that much more for their higher prices.
I don't know, but I do expect that XP would run like crap on a system with 128M of RAM.