Microsoft has loosened the hardware restrictions that PC makers must adhere to in order to install Windows XP on ultra-low-cost PCs, according to documents seen by IDG News Service.
[...] Under the new terms, outlined in the documents, PC makers must limit screen sizes to 14.1 inches and hard-drive capacity to 160GB. ULPCs with touchscreens will also be eligible. Earlier terms set in April did not allow touchscreens at all and limited screen sizes to 10.2 inches and hard-drive capacity to 80GB. The processors are still limited to a single-core chip running at no more than 1GHz, and memory is limited to 1G byte of RAM.