It's just like the packard hell computers. People don't know what they are getting. A mom may buy it for her son thinking hey this computer's only $400. Then when they open it and try running programs they realize "Oops, I guess that's why it was only $400".
I have no problem with Lindows trying to compete. But by using Wal-mart as their selling vehicle, I have to say they are taking advantage of naive consumers. Sure, buyer-beware, but that doesn't make what wal-mart and Lindows doing ethically right. It just means they can legally scam some money from poor uneducated consumers.