Stony Stevenson passed us a link to an IT News story about Microsoft's recent request that the folks behind the XO laptop redesign it to suit their needs. The company now wants to be able to run Windows XP on the highly-publicized and inexpensive portable. "Microsoft general manager ... Utzschneider says a shrunken version of Windows XP could potentially run on 2 Gbytes of flash memory. The XO, however, can only hold 1 Gbyte. As a result, Microsoft wants the XO's designers to add a slot through which more memory can be added via a secure digital (SD) card, Utzschneider said. Microsoft's renewed interest in participating in OLPC might be viewed by skeptics as an admission that a rival offering for developing markets called Classmate — which uses an Intel processor on Microsoft software — has failed to catch on."