I work in the same building as olpc in cambridge.

They havent been able to answer my question why isnt it a 100 laptop that any one can buy?
ie there is no market price mechanism here.

They want to convince govermnets to purchase them at a greater than $100 per child price and then spend more money supporting it.

Atanu has previously mentioned TV with a
VCR/DVD player for some lectures
Thats a proxy for a teacher and is cheap enough per classroom.

In order to make sure a young kid is learning Daily Exercises and Feedback is needed.
Creating and distributing workbooks for free is a good low tech and cheap solution for this aspect

Having looked at $100 Novatium I am not sure its a good solution either.
For one I doubt it that its sub 100 yet.
Another thing is that its going to have a higher software support cost than even Negropontes solution because its a different architecture.
Negropontes machine is more or less a standard pc without hdd running more or less stock linux.

So I am recommending paper and pencil solution for India.

I do suspect that market will deliver a ~100 InfoTerminal that can be tailored for education.
For non education it already has to some extent(its called a cell phone)