During his keynote here, Gates demonstrated about 15 new handheld devices from such companies as Casio, Samsung, Sony, Siemens, and Motorola, all of which are built on Microsoft's new CE.NET embedded operating system. Gates again hammered away at Microsoft's favorite topics, including the firm's so-called ".NET" strategy and its use of XML (extensible markup language) capabilities in next-generation handheld devices. Gates said that the growing .NET platform enables developers to bring the Internet to a broad range of devices, from handheld consumer technologies and industrial automation systems. "It's no longer just about delivering information to the PC," said Aubrey Edwards, director of marketing for Microsoft's Embedded Appliance Platform Group (Redmond, Wash.). "Now it's about delivering the information you need to any device, any time, any place."

Gates said that, unlike its soon-to-be-introduced XP Embedded product, CE.NET is aimed at small-footprint smart devices, such as handhelds, smart phones, set-top boxes, retail point-of-sale devices and displays.

He also announced pricing of $995 for Windows CE.NET tools, as well as free availability of the operating system's Evaluation and Emulation editions. The Evaluation and Emulation editions had previously been announced in Beta 1 and Beta 2 versions of "Talisker," the codename for the CE.NET operating system.

Company executives said that CE.NET will enable developers to more fully employ XML, which serves as a vehicle for representing Internet-based information in any device. Unlike Windows CE 3.0, the new system will offer more than a yes/no choice for employing XML, they said. Because CE.NET is more componentized than its predecessor, the new embedded operating system will allow developers to incorporate an "XML mini-version," a full XML deployment, and several levels in between.

"There was an XML component in CE 3.0, but it wasn't granular" Edwards noted. "You could take all of it or none of it, with no choices in between."

In addition, the company said it would offer one-day, two-day, and four-day CE.NET training courses through its certified training and education center.

At the keynote, Gates also previewed a set a Windows CE.Net-based technologies, code-named "Mira," designed to be included in anew generation of smart display devices, such as detachable, wireless, mobile flat screen monitors and digital televisions, allowing Windows PC experiences to be extended from the desktop to any room in the home.