http://www.reactos.org/en/news_page_37.html
Why would people use this instead of Windows?
Simple. It's more lightweight, but can run all their software. When ReactOS is complete, they'll be able to run up-to-date Windows apps without upgrading their hardware and paying for a new OS. It's even compatible with drivers for Windows. Once it reaches 1.0, it will be ready for home use, it will have a plethora of software and drivers, and a familiar interface.
Unfortunately this has been in development forever, development is very slow and it's very likely that once it is finished Microsoft will sue them into non-existence.
If you try it on Virtual Box, the virtual machine thinks it's Windows 2000.

