Check out http://www.ncomputing.com

I see it as a replacement for LSTP setup, they claim that the virtual
desktop device is cheaper than a normal PC (haven't compared vs a
clone/custom_made PC).

Anyone have an idea how much cheaper it is and can any Linux distro may run
into it?

They claim that Ubuntu 8.04 runs stable on it. WinXP works stable too.
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