Looks like Microsoft is listening to feedback regarding XP and ULCPCs, allowing XP Home to be installed on devices up to 14.1″ and those sporting touch screens. This is a change from their previous policy of not allowing touch screens, and limiting the screens to 10.2 inches. They also increased the diskspace requirement from 80 gb to 160 gb. The June 30 XP deadline for other devices still stands, though.
Kudos to Microsoft. Now, if we can just get them to widen that new policy to screens smaller than 21″ and active, touch, and normal, then we’ll all be happy :-)