Stories about how this initiative "failed" tend to cite a study on (*) Peruvian test scores.  
Sugar Labs emerged from this initiative and produces a custom GUI for Linux distributions.  After working for this initiative, Satish Jha developed a commercial spin-off called Aakash.  This project was headed by a former founder of the MIT Media Lab, Nicholas Negroponte.  This initiative contracted Vivitar to produce a bilingual device whose interface asks users what occupation they aspire to and was controversially sold in Wal-Mart.  Stories about how this initiative "failed" tend to cite a study on (*) Peruvian test scores.  This initiative created bright green devices called the XO-1 which could be recharged using a hand crank.  The devices produced by this initiative ended up costing twice the projected amount, namely $200.  For 10 points, name this project which sought to give kids cheap computers.
Sugar Labs emerged from this initiative and produces a custom GUI for Linux distributions.  
One Laptop Per Child [or OLPC; and yes, Satish Jha is the father of "GJR-GARCH" author Shantanu Jha]