With Netbook computers flooding the notebook market, Windows 7 has been restricted based upon system specification, rather than the previous view of application concurrency (3 at one time in Vista Starter Edition). This will no doubt allow Microsoft to compete the Linux based platforms, like Asus’s custom Xandros distribution. A really good call of you ask me!
Other Windows 7 starter features to NOT be included:
Aero Glass, meaning you can only use the “Windows Basic” or other opaque themes. It also means you do not get Taskbar Previews or Aero Peek.
Personalization features for changing desktop backgrounds, window colors, or sound schemes.
The ability to switch between users without having to log off.
Windows Media Center for watching recorded TV or other media.
Remote Media Streaming for streaming your music, videos, and recorded TV from your home computer.
Domain support for business customers.
XP Mode for those that want the ability to run older Windows XP programs on Windows 7.
For more information visit the Windows Team Blog here