My question is have they actually modified KDE itself, or just reconfigured it and perhaps completely replaced some of the KDE applications. I can't find mention of the source being available anywhere so I am hoping the latter.
I don't think I can actually answer your question, but I have installed Xandros when a copy was given to our Director of ICT (at a school) at a trade show.
KDE is customized to look very much like that Redmond based Operating System with a start menu called the "launch" menu. If you choose the relevent theming, some effort has gone into making a Windows user feel at home. For example, Konquerer is made to look very much like Explorer right down the exact colour of gradient on the left hand side and My Music and My Pictures folders.
I've read the License agreement (much to the amusement of onlooking student friends) and it basically says some packages on the Xandros disc are under the GPL and others are not - some have licenses that restrict installation to only one machine. You're expected to examine each individual license in detail before installing on more than one box...
Not sure I answered your question, sorry.
-- Ben "tola" Francis | 00101010 tola ^/. http://hippygeek.co.uk | mailto:tola@imen.org.uk opinions expressed are of the voices in my head only