A recent TED video describes an impressive set of educational videos being developed by the Khan Academy. The Khan Academy videos cover a wide variety of subjects from mathematics and science to history and geography for elementary school students. The students watch the videos as "homework" and then class time can be devoted to close student - teacher interactions to maximize teacher effectiveness. Related software tests and closely tracks student performance.
They cannot, however, be easily used in developing countries where internet access may be very slow or not available. I suggest that if some or all of the Khan system could be packaged on a 2 terabyte hard drive, it could be attached to a local server, such as an OLPC school server, to provide fast local access.
Another problem for global use of the videos is language. The scripts could help teach English and be used in parallel with Sugar activities in local languages. If we are becoming a global village, we need a common language. Or the scripts could be translated to local languages, but at increased cost.
Updates are a third problem but I suggest that the videos will remain valuable even if they were 10 or 20 years old. In contrast, Sugar activities are evolving rapidly and need frequent updates.
My basic point is that hard discs are so cheap now that OLPC servers can have it all: videos, Sugar activities, and even millions of documents (e.g. from eGranary).
I have no idea how linking Khan Academy videos to OLPC servers might be funded but as a potential donor, I can't think of a more cost effective way for my dollars to do some good in the world.