The stock configuration for CrunchBang Linux has a simple black wallpaper with "CrunchBang Linux" on it. He had the machine on while I was there. He apparently has figured out how to change the background and listen to streaming audio with it. He had it open in the living room next to his PS2. Once I got the wifi enabled, he started looking up video game faq's on it. So he would play some Wolverine, search for tips to beat the Blob, back and forth.
The Atari emulator? Because I am not very familiar with OpenBox, I told him he'd have to launch the Atari emulator from the command line. His wife showed him how the day he got the machine. He's actually trying other stuff from the command line as well.
He loves the CloudBook and shows it off every chance he gets. My first rule of gift giving is, "It should NEVER not be cool." Mission accomplished. I'm rid of that albatross, and instead of me just smashing it with a hammer (which I nearly did, no joke), it's gone to someone who likes, appreciates, and uses it.
So, to everyone who says Linux is too tough for the general public, kiss my Polish ass.