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[Neon]

Microsoft has delayed a special slimmed-down version of Windows XP for legacy PCs, which is based on the Windows Embedded code base. The Redmond company had expected to make the operating system available to Software Assurance customers this month, but now says Windows Fundamentals will ship "in late 2006."

Windows Fundamentals can run on older machines that do not support XP while providing the same level of security. The system could be utilized as a Remote Desktop or Citrix client, along with supporting management tools, terminal emulation software, and viewing of some documents. Microsoft did not give a specific reason for the delay, but the company has been focusing most of its efforts on finishing Windows Vista.