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I worked at an NGO in Cambodia at about the time they were considering a country-wide roll-out of OLPC. I believe the OLPC organization initially demanded an all-or-nothing implementation, but later agreed to a pilot program run in just Siem Reap. The pilot went poorly and the implementations wasn't extended. Because it was a failure, there weren't PR releases done by any of the parties involved.

From what I've heard, the problems they saw were with things like the cost of electricity consumed when doing multi-unit charging at schools and difficulty in integrating OLPC devices into teacher-driven curriculums.

In Cambodia at the moment, it seems like inexpensive Android devices are starting to deliver on some of the promises of the OLPC program. They're rugged, energy efficient, simple for children to use, and have a large variety of educational apps and material available (though fewer are available in Khmer). A family owns it, so issues like theft and damage are their responsibility. I vacationed in Cambodia last year, and was amazed to see how many smart phones were in common use, even in poorer areas.