John G. Spooner, of ZDNet News, reports that NEO's $99 iDVD Internet appliance, slated to begin shipments in May, is powered by an embedded Linux operating system . . .

“A new Internet appliance is aiming to rewrite the definition of 'bang for the buck' when it comes to computing devices. NEO, owned by Dallas-based Internet Service provider Eisa.com, announced on Monday its iDVD Internet appliance. The set-top box combines Internet access and e-mail with a digital video disk player.”

“The iDVD targets the digital divide — people who do not own a personal computer with Net access, either because PCs are too expensive or too difficult to master. Analysts feel the cheap iDVD machine could be a breakthrough. It will cost $99, where a so-called value PC from a vendor such as eMachines Inc. would cost about $599 with a monitor. The iDVD comes with a keyboard and a remote control. 'I think the price point makes it a very compelling unit,' said Schelley Olhava, a research analyst at International Data Corp.”

” . . . The Web browser and operating system, based on Linux, were developed by PlanetWeb of Sega Dreamcast fame, Angus said. The iDVD's processor is basically a modified MPEG2 decoder.”

“NEO will ship in May. Along with its $99 price, iDVD will require consumers to sign up for its Eisa.com Internet access, which costs $23.95 per month.”

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