According to this article Marvell has given the OLPC project a $5.6 million dollar grant to fund designing the XO-3 around a complete system on a chip (SOC) produced by Marvell. -Which will be based on the Marvell Moby reference platform.
This means that the OLPC XO-3 Arm tablet's R&D is now fully funded.
And Marvell's $99 tablet may not be vapor after all.
$99 tablet availability in 1st world countries is projected for 2011. 3rd world countries will have to wait on the OLPC XO-3 till at least 2012.