* based on IE7 so a lot of websites don't work/render properly. This does not seem important when the core of your users go on google/wikipedia and that's it. But my grandmother loves to order online but is limited to amazon because most of the other websites don't work properly. She would gladly pay more to be able to simplify most of the main websites UI for her and ease her order flow.
* Impossible to have more than one tab. This seems logical at first because it simplifies everything, but when she is ordering something as a gift and wants to look for an address she has to close the whole application and go in "notebook" and start over again. Same with the idea of having multiple tabs in IE.
* Email services really limited. Their idea is to avoid spam you have to whitelist every email address. But this is not negotiable, so when you order for the first time online you can't use your system's email because you'll never get the "confirm your email address". Or you use a gmail account for this which immediately make things too complicated for her.
* Most of the other features (games especially) are really limited/dumb such as having to recognize a banana. Creating games for her is something I'm planning to do but with the old browser inside the machine it makes things harder.
* Pictures management! We all send pictures to her by email but she can't organize them at all. I've been thinking of a UI for this but when I draw it/explain it I immediately see she would be completely lost. She needs a simple UI on top of explorer of something that would do "delete, crop, move, rename, add comments". And on top of that the main feature she needs is "print it for me and mail it to me". Websites already exist for this feature but she would have to understand how to upload photos and then use them which is clearly impossible.
* Keyboard! Another big issue for her is being able to raise her arms high enough for a long period of time to type an email on the screen with the tactile keyboard. At the same time, the keyboard delivered with the computer is not in alphabetical order. I've been trying to teach her but it takes her a long time to write so she mostly gives up and limit herself to a few words!
Hope this helps!