This woman really needs her head examined - confiscating OS disks, claiming Linux "holds back kids" (?), threatening to "pursue charges as the law allows" for "illegal" activities, and claiming that "No software is free and spreading that misconception is harmful".
Jesus wept - where do you start re-educating a woman who makes laughable claims like "I am sure if you contacted Microsoft, they would be more than happy to supply you with copies of an older verison (sic) of Windows and that way, your computers would actually be of service to those receiving them..." No my little retard, they would tell you the old OS's are out of date and flog you a copy of vista.
Utter, utter, utter moron
H/T: The register