An anonymous reader writes: 'Yesterday Nicholas Negroponte, former director of the Massachusetts Institute of Technology Media Lab now head of the nonprofit One Laptop Per Child project, gave analysts and journalists an update on the OLPC project. Two big changes were announced — the $100 OLPC is now the $175 OLPC, and it will be able to run Windows. Even in a free and open market where there are free and legal alternatives to using Windows and Office, there's a huge demand for Microsoft software. The OLPC was seen as a way for open source Linux distributions to achieve massive exposure in developing countries, but now Negroponte says that the OLPC machine will be able to run Windows as well as Linux. Details are sketchy but Negroponte did confirm that the XO's developers have been working with Microsoft to get the OLPC up to spec for Windows.' We also find out that the OLPC gets a price hike and will officially come to the US. Could this be tied into Microsoft's new $3 Windows XP Starter and Office 2007 bundle? Now that the OLPC and Intel's Classmate PC can both run Windows, is Linux in the developing world in trouble?