What that seems to mean is that OLPC looks like it's got a chance of getting the orders for the three million units that it needed to start production but where they might be coming from is still unclear.

However, OLPC's CTO Mary Lou Jepson told Reuters that the widgets could go on sale commercially in the west for $350 or more at Christmas, perhaps a fallback position in case third-world governments don't come through with real orders, since the timing of western sales is earlier than OLPC has previously suggested.

It is reportedly talking to several unidentified commercial distributors - three with "a big web presence" - since it would be sold over the Internet - that would also do technical support.

Anyway, manufacturing in China by Quanta is now slated for October after another round of testing.

XO will initially cost $176 for the third world.

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