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Microsoft reverses Windows 7 Starter limit

Microsoft Corp said on Friday it would not limit the number of applications available at one time on the Starter edition of its upcoming Windows 7 operating system, reversing its earlier strategy of limiting its capabilities and urging users to upgrade.

The move is a significant climbdown for Microsoft as it looks to keep a hold on the fast-growing market for small, cheap personal computers -- known as netbooks -- which are the principal market for the most basic version of Microsoft's new operating system, expected to roll out later this year.

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