Microsoft doesn't pay Dell to peddle it's products. Dell just pays less for the products that MS wants them to push. For instance, right now you'll notice that Vista Home costs less the XP on the website. Of course, both are sold at a lower cost with the understanding that Dell will push MS products as hard as possible. (If you look you wont see too many, if any selectable Linux options on the website) Course, this benefits both organizations as it allows Dell to kick out computers as cheap as some system builders.... at least when you consider the system builders will usually buy quality parts (higher cost), and the fact that Dell has a minimum of a 1 year warranty.

As for the Ubuntu side of the house, time will tell. In the beginning R&D+ getting people that aren't fixated on MS would jack the price up. Yes, almost anyone can install Ubuntu, not everybody can troubleshoot it or create a troubleshooting checklist that tech support will need. Now, if in the next 6-18 months the price doesn't drop.... hmmph, it'll be worth screaming about.

I think he'd be best returning it - the caps lock key is a little "sticky" by the looks of things.