Intel's up-and-coming mobile internet device, codenamed “McCaslin”, has been making the news lately since Intel announced its development not too long ago. More detail are being revealed about the device, including what software will power it – Linux. While it is capable of running a myriad of OS's including embedded versions of XP or Vista, Intel has opted to use a modified version of RedHat along with some proprietary code to make the little device go:

Developers will next month see the first MID-specific OS -- a tweak of China’s RedFlag Linux known as RedFlag MIDINUX -- while the IDF schedule itself includes a stream of "ultra mobile sessions" including one on "Designing for Linux-based mobile Internet devices".
It'll also be relying on the Gnome desktop, at least at its core. Intel has been a long-time supported of Linux in various aspects, most notably driver development, so it is not too much of a surprise to see them making this decision.