In case anyone might think the Microsoft Research project codenamed Menlo could end up derailing Microsoft’s current practice of using Windows CE/Windows Embedded Compact as the core of Microsoft’s mobile OS in the near term, think again.
Windows Phone OS 7.0 is built from the same core building blocks as its Windows Mobile OS predecessors: A Windows CE/Embedded Compact layer at the base, with a bunch of mobile customizations on top. In other words, the Windows Phone team is an OEM of Windows CE/Embedded Compact. (And so is the Zune media player team.)
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