Microsoft is aggressively pushing a new low-cost version of its operating system intended for use with “ultra low cost PCs,” competing with Linux on machines like the Eee and the One Laptop Per Child XO. However, Microsoft isn’t willing to sell the low-cost license to any ULPC — rather, the company has set out onerous conditions governing the maximum spec of these machines: 10.2″ screens and no more than 80GB of storage, and no touch screens allowed.

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