This past week, Linspire showed the first public demo of Linspire Five-0. I was lucky enough to play with it for the last week, and within, you'll find a detailed walkthrough of what's new with Linspire.
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Linspire has paid all the royalties for their commercial DVD playing program, so everything is legal.
Also, Linspire does in fact have the ability to play DVDs by default, just not locked DVDS, such as The Matrix and pretty much every other DVD movie.