Microsoft's
reprieve for Windows XP, at least for what Microsoft calls Ultra-low-cost PCs (ULCPCs), came as no surprise to most. ULCPCs are notebooks such as the Asus Eee PC or HP 2133 Mini-Note PC.
Shockingly (insert sarcasm here), and most likely, damagingly (at least in terms of the "Vista-Capable lawsuit" Microsoft is embroiled in),
emails from that lawsuit show that Microsoft wasn't exactly in the dark about Windows Vista performance issues, especially as it related to these low-cost laptops.
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Source: Tech-Ex