The situation was explained at ANN if anybody wants to wade through a long thread for it. Basically, the Pegasos-in-a-microwave was shipped by courier and set up by people not familiar with it. This thing was built for fun, basically, so getting a laugh is the point. (Of course, it's supposed to work, too.)
I suspect it got rattled around too much in transit and something loosened up. People at the show had to locate a keyboard a mouse, which weren't shipped with the computer. And it was running an old MOS version. Not exactly a recipe for a successful showing, but the report could have been more even-handed about it.
-- gary_c