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This isn't Nixon going to China. This is more like Bush going to to Iraq, except MS has less deluded expectations.
Actually, that analogy isn't half bad (except for the issue of good vs evil vs ambiguous). Free/open source is kind of a decentralized opponent against which MS can't apply it's standard tactics. And MS/Bush is picking this fight; a good number of Free/Open Source software folks really don't give a damn about Microsoft (though plenty of others wouldn't mind seeing MS's downfall).
I don't know the details, but I think this is a mistake for Novell. Unless they are somehow outfoxing Microsoft, which seems extremely unlikely.