Several ThinClient (TC) manufacturers are talking (loudly) about the possibility to use the XPe (embedded) client platform to run
windows applications on that devices. I spent some time talking to those manufacturers and Microsoft folks. It seems that some TC vendors don't tell the complete story..
When you read the EULA (normally I don't read that to be honest) of XP embedded, it essentialy says that you can run Windows applications on the XPe platform, BUT only when these apps are single purpose non-bussiness applications, so the Adobe Readers, IE, RDC/ICA clients etc. (essense of EULA is mentioned on the buttom of this page)
When I speak with TC vendors they say a different story, that you may run (any) Windows application on XPe without any problem.
It's a not technical discussion but a legal discussion!. From legal point of view you are not able to run (virtualized) multipurpose business applications on XP embedded. (Microsoft Application Virtualization (formerly SoftGrid), Thinstall, Citrix Application Streaming, or Altiris SVS solutions).
In addition to the XPe legal part of this discussion, Microsoft Application Virtualization may not being used from licencing perspective. MDOP can only being used on 2000, XP (not embbeded) and Vista client platforms.
Cut and Past from the EULA:
Definition of an Embedded System
An "embedded system" is any computer system or computing device that performs a dedicated function or is designed for use with a specific embedded software application. Embedded systems may use a ROM-based operating system or they may use a disk-based system, like a PC. But an embedded system cannot be used as a commercially viable substitute for multipurpose computers or devices.
This limits the use of office automation/personal computing functions (e-mail, word processing, spreadsheets, database, network browsing, scheduling, and personal finance) permitted with the particular embedded licensed product.
Windows XP Embedded is licensed for devices that perform Office Automation and Personal Computing Functions only to the extent that the Office Automation and Personal Computing Functions: (i) directly support the operation of, and are an integral part of, the Embedded Application (defined below); and (ii) operate only when used with the Embedded Application (that is, the Office Automation and Personal Computing Functions shall only permit creation, play, display, or communication of content that is directly related to the commercial or industrial processes or tasks that the device is specifically designed to address).
An "Embedded Application" means industry- or task-specific software programs and/or functionality that provide the primary functionality of the device and which offer significant functionality in addition to Windows XP Embedded.
http://msdn2.microsoft.com/en-us/library/ms940172.aspx