This [http://www.mail-archive.com/devel@lists.laptop.org/msg23544.html discussion thread] explains why Fedora 13 and [[Sugar on a Stick/Mirabelle]] are not compatible with the XO-1 (until a fix is implemented).
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(For a non-Live USB, Sugar 0.88 installation, see [[Dextrose]] for Sugar 0.88 on Fedora 11 for the XO-1.)