Microsoft will make a Windows 7 Home Basic edition, but plans to sell it only in emerging markets. Some have wondered whether Microsoft is ditching Home Basic from the Windows 7 line in the U.S. because of the flak it caught, including the notorious "Vista Capable" class-action lawsuit, over that edition. That case, which has been suspended while the plaintiffs appeal a federal judge's ruling, accused Microsoft of misleading consumers in the run-up to the January 2007 release of Vista by marketing PCs as able to run Vista when the only version usable on the machines was the stripped-down Home Basic.

In fact, in 2005, some within Microsoft unsuccessfully argued that Vista Home Basic should be stripped of the "Vista" name because they feared "user product expectations" would be unmet.

TechARP noted that Microsoft is avoiding a repeat by banning Vista Home Basic from the Windows 7 upgrade program. "Not all Windows Home Basic PCs meet the Windows 7 hardware requirements, whereas all Logo-qualifying versions of Windows Vista Home Premium, Windows Vista Business, and Windows Vista Ultimate will meet the Windows 7 hardware requirements," the site said.

Netbook buyers will also be ineligible for a free or discounted upgrade, said TechARP, because those small, lightweight and inexpensive notebooks are equipped with either Windows XP Home or Vista Home Basic. Neither of those operating systems have an upgrade path under the program. "Microsoft's current solution for netbooks [is] Windows XP Home Basic or Vista Home Basic. ... By definition, [netbooks] cannot qualify for the Windows 7 Upgrade Option Program because they do not have the necessary OS preinstalled," said the site.

However, Microsoft reportedly will offer a Windows 7 upgrade to people who buy PCs during the program's run that have been factory-downgraded to Windows XP Professional. That seeming contradiction is nothing of the sort: Machines downgraded to XP Professional actually come with a license to either Vista Business or Vista Ultimate, both of which will be eligible for the discounted or free upgrade to Windows 7.

TechARP had no information on what computer makers and retailers may charge for the Windows 7 upgrade. That's no surprise, since it's probable that OEMs and retailers will be given considerable flexibility by Microsoft. In 2006's Vista Express Upgrade, for example, some PC makers, such as Hewlett-Packard, offered free upgrades, while others, including Dell, charged users up to $49.

The most important piece of information still missing is the start date for the deal. Microsoft's reticence to divulge that is understandable, said Michael Cherry, an analyst with Directions on Microsoft. "Once you've told people the date, that starts the clock," said Cherry. "Now people, if they're inclined to wait [until the program begins] will wait to buy."