OLPC G1G1

Having taken part in the first round of OLPC's G1G1, I can definitely say that these things make fantastic ultra-portable machines. Since they run Redhat-based Linux (which you can of course replace with Debian if you prefer, or just replace the UI), you can easily install everything from FreeDoom to Apache HTTPD Server. In short order, I installed subversion, Apache HTTPD Server, PHP5, and MySQL (Vim and SSH come preinstalled). Since they designed these things for kids to carry to school through everything from rain storms to sand storms, they'll out-rugged anything else even remotely like it.

Or, you can give it to someone you know who can get use out of the myriad of Activities it includes for kids to learn everything from reading and writing to programming to music.

Either way, Go give one.