A US FIRM* claims it's just about ready to go with a cut down version of Windows XP that trims layers of fat from the Microsoft OS.
LitePC.com is offering a beta version of XP Lite to what it says are its licensed customers and so far it just gets rid of trivial elements in the OS.
But the web page for the site says that a poll it's conducted shows that many people don't mind abandoning the Windows File Protection feature in XP and Windows 2000.
But, the site says, even when Windows XP is "stripped bare of all" its options, its size is still monstrous compared to another product it's been shipping for a while.
The web site has a list of the features in Windows XP which it says can go and still reduce the size
Source:
http://www.theinquirer.net/?article=11078
More info:
http://www.litepc.com/xplite.html