NEC is to launch 8.9-inch netbook this November in Japan company president Kaoru Yan said.
The gadget called LaVie Light will be based on Intel's Atom N270 processor and will run Windows XP - cough!
Other specs for device include a 160GB hard drive and 1Gb of memory. µ
I wonder how long it will take microsoft to either strip down vista to make it run on netbooks (can't see that happening), or release Windows for netbooks/ultra portables, all be it windows xp without the XP.

Since it can not be good for microsoft that the latest gadget is useing a 7 year old OS
The HP netbooks come with Vista (the via-based models anyway, not sure about any others). I guess the Atom platform isn't supported on Vista yet otherwise you'd think one of them would be using it.
I think that vista home basic should run fine out-of-the box on an intel atom netbook, so long as you have enough ram, disable indexing and connect some usb flash drives for readyboost to use.