Actually, having worked as tech support for 3 out of my 4 semesters in college, I honestly believe that the idea isn't as good as it seems. Some academic software (SPSS or others such as Dreamweaver or Photoshop, which, surprise, is academic) simply cannot run on non-Windows platforms, and buying Xandros in bulk isn't the solution. You are teaching people, in some cases, how to work with certain products and programs simply because they are the industry-leaders, and they are going to be using these products in the real world. And isn't that the whole point (for me anyway) of going to college--to get an education that will actually be useful in the real world?

The money isn't a big thing, as you mention, and to be honest, overall, the students aren't all going to be future programmers or things like that. Unless your grandfather wants a new direction for the school as a specialty programmers/engineers training center, it might be a good idea to talk to the IT and curriculum support departments. They're the ones who are going to have to deal with the 3000 or so students who can't make the leap.