I happened to work there. Their app store was a much bigger focus internally than the ability to run Windows apps. I think one of their bigger mistakes was charging for Free Software apps in their Click-n-Run app store.

The company's probably long enough gone that I can mention there was an easter egg in earlier versions of the app store client, with developer credits. You had to queue apps to install such that their first letters spelled Click-n-Run, then press Ctrl-Alt-Shift-C. The easiest way to do it was using KDE2's dcop -- DBUS has nothing on DCOP's ease of use and discoverability.

It came with the added fun of having Microsoft sue them, just to have the court say that "Windows" in the OS context is not a defensible trademark!

At which point MS settled out of court and kept Lindows in business for many years to come.