Yeah! It comes with Linpus Lnux Lite. a version that has been specifically built for the Aspire one. I did not buy one when I left India becase Acer was not offering the Linux version in India while I had one in UK. And I didn't want to apy for WinXP Home edition licenses.
Though it runs Linux, it is a purpose built version for Internet surfing and quicker boot (about 15 seconds) that has a smaller footprint in the tiny hardware capabilities and has a specially built GUI and stuff. You need to reinstall your favourite distro if you want complete functionality. Regards, -- Navneet

