Microsoft’s software engineers are “working hard” on a slimmed-down version of Windows XP for the One Laptop Per Child project, but company officials say there is still much work to be done. James Utzschneider, GM of Marketing and Communications of Microsoft’s Unlimited Potential Group, says in his blog that contrary to earlier media reports that XP doesn’t yet run on the OLPC, but adds that his team has been working on the operating system since the beginning of the year.

TG Daily

Here is an idea, just slap on Windows Vista Home Basic and you’re pretty much covered. Besides, Vista Basic is a glorified version of XP anyways so it shouldn’t be that difficult. Also, theres not much to slim down in Vista basic. The only reason I can think of for them not using Home Basic is that, it’s TOO stripped down and instead, they would have to ADD things to it.