One problem with Windows Vista is that its system requirements are too much for the emerging class of "netbooks" -- small, portable computers that typically use solid-state flash storage rather than traditional hard drives. That's why computer maker ASUS went with Windows XP instead when it started offering the Microsoft operating system on its popular Eee PC earlier this year.

But at Microsoft's Windows Hardware Engineering Conference, the company made a point of demonstrating Windows 7 running on an Eee PC, as a result of the improvements made under the hood of the next operating system.

The demonstration model had 1 GB of RAM, 16 GB of SSD flash storage, and a 1.6 GHz Intel Atom dual-core microprocessor. During the demo, Windows chief Steven Sinofsky and Microsoft's Mike Angiulo took a picture with a digital camera and plugged it into the machine, bringing up Windows 7's centralized "Device Stage" device management area.

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