Even though TFA doesn't mention it, it's true that the computer being sold is called Magellan. It's basically a rename of Intel Classmate, with 1/3 of it being produced in Portugal.
It was launched a few days ago over here (Portugal). The computer is being given (almost free) to kids in the 5th grade, and sold to the public for ~285 euros.
Imo, it's just sad to see what I believe is a waste of public funds! First, the government is pouring cash into Intel's pocket for a sub-product, when it could've allied itself with the OLPC. Second, they think that by throwing fishing sticks at people, they'll learn how to fish. The computers will most likely be used for IM (MSN), social network (hi5) and warez.
As for this deal with Venezuela, Chavez and Socrates (portuguese prime minister) are having some deals, and this is just another one. Portugal also has a huge community in Venezuela (around 1 million iirc).