As for the reasons for ubuntu pre-installed models not being cheaper than windows equivalents:-
some good points in the comments above.
One thing that is sometimes overlooked is that Dell has to train staff to deal with this new support channel (linux desktop) and is probably clawing a bit of that training cost back from each ubuntu sale.

Not ideal but eventually Dell will have established support teams in each country for Ubuntu and that may remove one of the pricing factors.

So, the computer for $1,100 in the USA is 1,100 British Pounds in the UK, almost double in price after the addition of the VAT!

Dell UK sets their own prices. It seems that most companies do, and maximize their profits at a huge cost to the consumer!

Vista Home might sell for $239 in the USA, but is is more like $439 in the UK, according to the comments I see on the Newsgroups!

GNU/Linux is very popular in the UK and elsewhere in the EU, to make older systems really perform, saving money, and the environment!

Microsoft executives have testified under oath and stated in SEC Quarterly Filings that Linux is above 17% of market share for users, with growth over 3% per annum in new users.

Vista growth is at 1% per annum, (cite: SEC filings) most being replacements for older systems, much of which is snatched up for re-use with GNU/Linux installs. http://vixta.org is one such and ~300 more are free at http://livecdlist.com for download.

Mepis is Ubuntu on steroids… I much prefer it, over edubuntu, for all the 2nd graders, on donated 700Mhz/256MB Dells, Gateways, HP/Compaqs.

Further info has been posted here – http://direct2dell.com/one2one/archive/2007/11/07/32908.aspx

We are sorry for the churn this has caused.

It may be … and probably is … that MS has these companies under some sort of obligatory agreement. Dunno. But a license free (as in the MS license) open-source system seems like a no-brainer …

You mean the crapware I have had to uninstall from friends’ computers, of course. Uninstall the various Norton, AOL, and soon-to-die-in-60-days M$ Office so I can put AVG, Spybot, Ad-Aware, and Open Office in their place.

It’s a disgusting thought that garbageware like that keeps Windows PC prices low.

I don’t have to like it, that’s for sure.

But on a positive note, since Vista made me take the Ubuntu plunge, I now have a screaming system that gives me a good feeling. Plus, I can shrug my shoulders when asked how to fix (fill in blank here) in Vista.

If all other things were equal, I’d agree that a free O/S box should cost less than a Windows box. However, as Ron S.’s post points out, the kickbacks from software vendors push the Windows pricing down. Quite possibly the vendor payments per unit more than offset the unit cost of Windows. If that is the case, then it does make sense.

Hello Ron Enderland,
I agree. A Linux box should cost less. Not more.

The idea that a PC with a free O/S costs more than one that sets you back over a hundred bucks to buy off the store shelves is INSANE.

We will never have diversity, O/S-wise, unless this type of blackmail is stopped. Microsoft may have the world by the short and curlies with arrangements like this, but sooner or later people are going to get mad. Why can’t the DOJ look into why Dell charges like this?