When netbooks first came along, they almost all ran Linux. Microsoft, which was stuck with the resource pig known as Windows Vista, simply couldn't compete. So, reluctantly, Microsoft gave Windows XP Home a new lease on life and sold it below cost to OEMs (original equipment manufacturers) to kill the Linux desktop at the root. For this cost, Microsoft was successful, but now Microsoft is about to blow it by replacing XP Home with Windows 7 Starter Edition, which is crippleware by any other name. This is why Microsoft has been claiming that Windows 7 will run just great on netbooks. Except, now they're not. Now, Microsoft is telling us that instead of full-strength Windows 7, you'll be getting Windows 7 Starter Edition instead.
Windows 7 Starter Edition limits you to three applications running at once. That's not quite as bad as it sounds.
For instance, an anti-virus program running as a service doesn't count against the limit and neither does running multiple tabs or windows with one application. Of course, if you're like me and you're always running a Web browser, an e-mail client, an IM client and a word processor, you're out of luck. I can see users throwing their netbooks in sheer frustration against the wall when they try, and fail, to run four applications at once.
You also won't get Aero Glass; remote desktop; network domain or AD support; and BitLocker/BitLocker to Go encryption on the Starter Edition. In short, it's crippleware. read rest here