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It's not based on Linux at all. They have written their own NT clone from the ground up. Their relationship to WINE it that they used some of their reverse engineering and implementing of the Windows API as a reference for their own Windows compatible API. So it has nothing to do with Linux.
ReactOS is an attempt to create a complete open source reimplementation of Windows NT/2k
It has many Wine parts, but it isn't Linux running Wine - it is a clone of the NT kernel, wine DLLs ported to that kernel, and clones of those service and applications that Windows has (like GDI, Windows Explorer, etc)
Pretty slick really. Some people hacked on a kernel quietly and without fanfare for sometime. Then, suddenly, they reached a point where they could import a signifigant chunk of Wine, and due to that could run a GPL clone of Windows Explorer that already existed. Badda bing badda boom, ReactOS went from a kernel with some graphics tests to an OS with a functional desktop and applications






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I've never played around with ReactOS before. Is it a *nix distro that basically runs in constant Wine "emulation"? Looking briefly on their site, it appears that you can use Windows drivers. Do you have to convert the drivers to something else first?
Can someone just explain this distro to me in a "nut shell"? lol
Thanks.