The OLPC XS is a Linux-based OS (a Fedora-based distribution) designed to be installed on generic low-to-midrange mildlyruggedized servers. Initial plans of building a custom server geared for the role have been postponed, OLPC however offers XS_Recommended_Hardware for the system, and plans to support the XO hardware running as a server for very small schools.
The (currently on hold) plans call for an energy-efficient design that does not require moving parts for basic functionality. It will be mildly ruggedized.
The system will boot from flash memory, which is far less likely to fail than a hard disk. Hard disks will be provided for storing a library of local content and for making backups of the children's data. The XS is intended to ship with one hard disk installed, and a second to serve as either a spare or for increased capacity. The second is not installed by default because this would consume extra power.
There will be three 802.11s wireless mesh connections. Each will be a USB device with a 3 meter (10 foot) cable, allowing good antenna placement (high, unobstructed) and good server placement (dry, secure).