Yes, this is going to be a problem. For the DOS familiar, it makes Linux appear to confirm MS FUD about being command line only. For those not familiar with DOS, it might as well be written in sanskrit. At the same time, it's a good thing to have available for the curious.
My suggestion is one of two approaches. First, make a handout with some screenshots. Necessarily, you're going to want to use the best looking ones you can get. (Although I'd stay away from ones that are hightly customized. You want items newbies can do with default settings/options.) Then, list applications available (not necessarily by name, but by "topic", as names might confuse people, or make them weary, because they aren't the same names as MS software.)
The other approach is probably better, and I know I'll get some flames for this.
That said, I think "handouts" are a bad idea for the time being. Sure, you might intrigue some people, but you also run the risk of what happened in 1998-2000. A lot of people "tried" linux, and decided it wasn't up to snuff. As a result, many of those people feel no particular attraction to it now, as one bad experience was enough.
The way to get around this apparent catch-22 is to target select audiences. Go to your local user groups, including the ones that aren't Linux-specific. When people make complaints, and so on, wait quietly. Then, after the "meeting", make friends with the dissatisfied user. Somewhere along the line, without being pushy, mention Linux. Generally, people in this kind of environment will know about linux, but not much more.
Here's the "trick" that works for me. When they express an interest, at first politely shrug them off. Tell them you'd be happy to offer your help, but you're busy, or something, but maybe next time. Make them sit on it. The next time they're there, make them approach you. Be friendly, just act like you forgot. The idea is to not push. For whatever reason, people, when not pushed, start to push themselves. Maybe it's because we're social animals and can't stand to be ignored.
If you do this right, you'll have almost a 100% response.
The next part works best if you have a laptop or PC right there with you. If not, it's not nearly as effective, so you need to adjust your way of presenting Linux. Basically, as you're booting your computer, and as they see Linux running, and as you show them various applications, badmouth Linux--lightly.
I don't mean trash Linux, I mean, point out all the things they aren't going to be able to do with linux, with qualifications. For instance, as you're pointing out that openoffice is free and works similarly (adding in whatever bits of knowledge you like), mention that many games are MS only. Of course, you want to match something fantastic with "bad" news, but this depends on your listener. The idea is to help them to realize that MS Windows/Office hasn't helped them, it's simply been a subtle trap, without actually implying it when you talk. (People don't like to be insulted, and software purchases are usually based on people wanting to feel they are experts, or at least above average.)
Why "badmouth" Linux? Because you want them to decide if they are willing to work with Linux. Despite all our best wishes, Linux still isn't idiot proof. It does take some effort to set up (because most people barely even know how to install windows), and some patience to adjust to. Not that it's hard, but what you are essentially doing during this procedure, is screening out those who don't share those qualities.
You'll lose most people during this part, and the temptation is to try to "win" them back. Fight that like hell. Take any wins as a victory, and let those wins do the talking for you. It's one thing for a Linux promoter to win converts, it's more effective for a windows user to hear that another windows user prefers Linux. Begging people to use Linux (and it will look like that, no matter what spin you put on it), won't help any.
All in all, the general idea is to win over the people that really know and feel comfortable with computers. These are the people that are helping others decide what to use. The more overclockers, hackers, techies, and so on that use Linux, the more "grandma's and grandpa's" are going to feel okay about having this "funny-looking" OS on their computer.
Handouts are fine, but like political handouts, unless you have a deep-seated interest in the subject, the flyer ends up in the trash.
