Microsoft announced on the Windows Team Blog that the Starter
Edition of Windows 7 will no longer limit the number of applications
you can run at once.
"For the first time, we will be making
Windows 7 Starter available worldwide on small notebook PCs. We are
also going to enable Windows 7 Starter customers the ability to run as
many applications simultaneously as they would like, instead of being
constricted to the 3 application limit that the previous Starter
editions included. "


It is important to point out that the Starter
Edition of Windows 7 is not the only version of Windows 7 designed for
Netbooks. Microsoft says any version of Windows 7 should run fine on a
netbook. In fact, I run Windows 7 ultimate on my Lenovo S10 netbook.
With
the exception of the limit on applications that was removed the other
restrictions remain. Windows 7 Starter Edition does NOT include:

• Aero
  Glass, meaning you can only use the “Windows Basic” or other opaque
  themes. It also means you do not get Taskbar Previews or Aero Peek.
  
• Personalization features for changing desktop backgrounds, window colors, or sound schemes.
  
• The ability to switch between users without having to log off.
  
• Multi-monitor support.
  
• DVD playback.
  
• Windows Media Center for watching recorded TV or other media.
  
• Remote Media Streaming for streaming your music, videos, and recorded TV from your home computer.
  
• Domain support for business customers.
  
• XP Mode for those that want the ability to run older Windows XP programs on Windows 7.