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Microsoft have confirmed that Windows XP Starter Edition will be released in October and targeted at the Asian market. At the moment Starter Edition is a crippled version of Windows which lacks functionality for the average user. Users who will buy Starter Edition won't be able to use more than 3 windows at the same time, some keyboard functionality is restricted, no file-sharing, no print sharing and no support for local area networks.
The whole idea around Starter Edition is to market a cheap version of Windows that end users will buy and then to convince the user to upgrade to the full version of Windows. It's not clear just how cheap Microsoft are planning to make Starter Edition at present.
 News source: Microsoft
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