This shouldn't really be news to anyone here, but for some reason we still feel compelled to note it: the Seattle Times has a lengthy article on the past business shakiness of Microworkz, the company who recently announced a super-cheap $199 "iToaster" that aims to be the ubiquitous Internet computing appliance. The iToaster, which runs a custom hybrid of Linux and the BeOS, features an interface so simple that the only people who'd have trouble working it are the same people who find making toast a touch-and-go process. Basically, the interface is reminiscent of At Ease or the Launcher-- big buttons to click for different web sites and applications. With its alleged ease of use and low price, the iToaster stands poised to do battle with other set-top-box systems like Microsoft's WebTV-- and general-purpose consumer computers like the iMac. The latest eyebrow-raising buzz about the iToaster is the way that megagiant AOL has reportedly been sniffing around, possibly interested in making a deal involving non-Windows low-cost AOL PCs.

But for the iToaster to get off the ground, Microworkz is going to have to outrun its reputation for disappointing its customers. Last year, Microworkz was at the forefront of super-el-cheapo PC systems, hawking its Webzter line of sub-$500 computers; unfortunately, lots of people who placed orders for those systems never got their merchandise-- and had to jump through some serious hoops to get their money back. Apparently there were thirty-seven consumer complaints lodged against Microworkz at the Washington Attorney General's Office since last summer. One couple ordered a system in mid-February which never showed up and, after logging lots of phone time, they only finally got their money back at the beginning of May. Another gentleman ordered a Microworkz system in March and, describing the whole experience as "a nightmare in hell," still has gotten neither his computer nor a refund; Microworkz chief exec Rick Latman says the check is in the mail. And it turns out that Microworkz isn't the first business venture that has landed Latman in hot water; his bridal shop stands accused of having taken customer deposits without delivering gowns, and he's also being sued by former associates over a web site deal. Hmmm.

So when (if?) the iToaster is released on July 15th, we'll be interested to see if Latman has fixed his company's availability problems or not. Since the iMac represents Apple's current weapon in the price-sensitive consumer arena, it's important to see how well these lower-cost systems fare. But with Microworkz' past problems (and the Future Power E-Power now the subject of an Apple lawsuit), it's possible that Apple doesn't have too much to worry about-- from those particular competitors, at any rate.