Microsoft will launch a new version of Windows XP by late 2006. The project is called Windows Fundamentals and it's aimed at legacy PCs. It works with the Microsoft Remote Desktop Connection client or third-party clients such as the Citrix ICA client.
Currently scheduled for release in late 2006, Microsoft Windows Fundamentals for Legacy PCs is a Windows-based operating system designed for customers who have older computers running earlier operating systems and who are not in a position to purchase new hardware. This operating system is available only to Microsoft Software Assurance customers and helps you get the most from your older hardware, thereby reducing your total cost of ownership. This Software Assurance benefit provides improvements to security and manageability to reduce the strain on your IT team, improve end-user productivity, and close security gaps.