Everyone knows
the "$100 laptop", the OLPC XO-1 machine that spawned
 the Intel Classmate which in turn spawned the whole "netbook" market.
 I will warrant that fewer know of the Indian $12 PC, based on a clone
 of an old Nintendo:
 
http://www.techtree.com/India/News/12_PC_Based_on_a_Game_Console/551-91911-=
 581.html
 
http://www.computerworld.com/s/article/9111759/_12_Indian_TV_computer_a_kno=
 ckoff_of_80s_Nintendo_system_not_Apple_II
 The $12 PC is horribly compromised, but it's a good idea at heart: a
 computer so cheap it's affordable for the urban poor.
 But if one were to try to design an actual computer that cheap,
 something programmable that could maybe even do email and telnet and
 really simple TCP/IP-type stuff  like that, what would you put in the
 box?
 I am taking it as more or less a given that it would have to be a VERY
 simple 1980s-style 8-bit machine. The easiest way might be to clone
 one of the 80s home computers, implement it on a chip with some extra
 software, like Jeri Ellsworth's fantastic Commodore 64 Direct-TV
 device.
 But which 8-bit?
      
 Is this a subtle way of restarting the 'My C64 beats your speccy' war? If
 so, it's not going to work :-)
  If you had to fit an entire computer, with
storage and software, into
 an FPGA or some similar device and install it in a keyboard, with a
 couple of USB ports for storage and connection to a cellphone for
 communications...
 Which would be the best, most versatile, capable 1980s 8-bit machine to use=
 ?
 An Apple II with loads of options in virtual "slots"?
 A Commodore 64, for the graphics, sound and huge games library?
 A Spectrum, for its simplicity but large range of programming
 languages and so on?
 A BBC Micro, with the best BASIC ever and sideways ROM support for
 additional features?
      
 One good thing about the BBC micro (at least for me) was the large number
 of built-in interfacs, particularly the user port and ADC. You are not
 going to be able to duplcate that for $12 (not even the connectors!, and
 IMHO you would have to buffer them to protect the FPGA or whatever
 against user error. It was one thign to blow up a 5 quid VIA in a machine
 costing \pounds 400. It would be quiie enoguh to blow up a $10 FPGA in a
 machien costing $12...)
  An MSX2 machine, some of the latest and
best-equipped 8-bitters?
      
 I guess my vote would got to a clone of the TRS-80 CoCo3 running OS-9 and
 BASIC-09. That software is rommable, which makes life a little easier.
 It's alos a very nice verion of BASIC (better than BBC BASIC in some
 repsects).
 If the cost was less of an issue, so I could have buffered user port,
 ADC, etc, then by dream 8-bitter would be much of the BCC micro hardware
 with a 68B09 rather than a 6502 CPU.
 -tony
    
 I'd use one of the dirt cheap ARM based cpus with Linux.
The hardware cost for an old cpu is same as newer.
However if salvaging old hardware then the game changes to what
is available.
WRT54GL routers are simple, hackable and run linux
and have the needed wifi and wire ports.
Many of the newer game consoles are expensive but one or two
generations back are scrap and have mreo resources than many
8bitters.
Generally it's cost and availability with the latter driving it more
based on a friend over in Mozambique.
Allison