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I can't help thinking Microsoft might be a little bit upset about an XP clone that's free. Bill Gates might try to fnd a lawyer willing to help protect that intellectual property.
And if anything goes wrong, who ya gonna call? GhostBusters?
Update: I take it back, doesn't look it's Win32 compatible anymore by default, but there's definitely other packages available for Linspire that add Windows support some to some level.