My mom used Ubuntu 9.10 exclusively for about a year with no complaints, but she isn't what you would consider a power user.
OpenOffice really is fine. Not sure how it compares with MS Office 2010 though.
As for .NET, I have no personal experience, but as Photon said either use Windows or a VirtualBox.
I have zero experience with MobileMe, but I know when my mom got her iPhone I was not willing to mess around to get it to work with Linux so I switched her back to Windows. It probably would not have been that hard but it was easier to reinstall XO than figure it out.
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