But even as Microsoft dropped the application limitation from Windows 7 Starter, it confirmed that the version would lack a host of features that higher-priced editions will include. For one, Starter does not offer the Vista-esque "Aero" graphical user interface; instead, it will use what Microsoft called a "Windows Basic" theme that resembles XP.

Also missing from Starter, said LeBlanc, is DVD playback; multi-monitor support; personalization tools that let users change the desktop wallpaper, colors and sound themes; the Windows Media Center software for watching recorded TV or other content; and domain support.

The low-end edition also , the virtualized environment for running older applications. XP Mode will be offered only to customers running Windows 7 Professional, Ultimate and Enterprise, the three top-priced editions.

Cherry saw the change as more evidence that Microsoft was trying to avoid the mistakes it made with Windows Vista. "They're really doing everything they can to remove any barrier to the OS," said Cherry. "And by removing these barriers, they really are working to make as smooth a transition as possible into Windows 7."

Report from the usually-reliable Web site TechARP.com say Microsoft has that apply only to computer makers. Earlier in the week, TechARP.com said Microsoft will allow OEMs to install Starter only on PCs with screens no larger than 10.2 inches that run a low-powered single-core processor.