When Linus Torvalds first developed Linux back in August of 1991, the operating system basically consisted of his kernel and some GNU tools. With the help of others Linus added more and more tools and applications.
With time, individuals, university students and companies began distributing Linux with their own choice of packages bound around Linus' kernel. This is where the concept of the "distribution" was born.
Today, creating and selling Linux distributions is a multi-million dollar business. You can buy a boxed version of Linux from companies such as Red Hat, SuSE, MandrakeSoft and others. You can also download Linux from any number of companies and individuals. There are distributions of all types and for practically any kind of computing endeavor.
For a complete list of various linux distributions and a comparison check this wiki artilce. You can follow the links there to download your favourite linux. My favourite is Cent OS.
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