TechInsider
Favorite Answer
Yes.
The Asus Eee PC and the Dell 9 Mini are examples of the new 'cheap' laptops. Both can be had for less than $500.
The Phlebob
I think you're talking about OLPC -- One Laptop Per Child. This is directed toward getting cheap (<$100 originally) laptops to the poor in Third-World countries. I don't know if it's going to be available in the US.
Hope that helps.