One step forward, one step back: just as we were getting ready to celebrate Microsoft's decision to remove the three-app limit from Windows 7 Starter Edition, we're hearing that Redmond is still planning to impose strict limits on what types of machines get to run the stripped-down build. Just like today's max XP specs, things are pretty weak all around: Window 7 Starter machines will max out at 10.2-inch screens, 1GB of RAM, 250GB hard drives or 64GB SSDs, and single-core processors under 2GHz. Of course, Microsoft's told us all along that it thinks lots of OEMs will ignore the max specs and just ship Windows 7 Home Premium since it runs way better on netbooks than Vista, but we'll see how this plays out at Computex -- we're expecting a wave of 10.2-inch netbooks with 2GHz procs and 1GB of RAM in the near future.

[Via ZDNet]