Kirk Strauser blogs about the succes of giving his computer-newbies in-laws a computer with Ubuntu installed on.
You can read the short story here.
This was the year of Linux on the desktop, at least for my family. I've been using a succession of free systems for years, switching at a whim between FreeBSD, Gentoo, and Debian; I'm the household geek though, so that doesn't mean much. However, the real turning point came when we decided to build a little computer out of spare parts as a Christmas present for my in-laws. Rather than giving them an old licensed version of Windows, or shelling out much more than the value of the computer for a new copy of XP, I decided to install Ubuntu.