Microsoft has unveiled Windows XP Embedded with Service Pack 2 (SP2), the latest version of its operating system for small-footprint devices such as point-of-service kiosks and thin clients.

Customers will be able to use a downloadable preview to test the new software for conflicts with existing drivers. The new code has many of the same features as the PC version of XP, including an improved firewall.

It differs from the PC code in that developers can more easily cut out what they do not need. XP Embedded has more than 10,000 software components and many are only needed for specialised applications.

"Using PC software for embedded devices doesn't make sense in some cases," said Hardy Poppinga, EMEA product manager for Microsoft's mobile and embedded devices division.

"Now developers can pick and choose the amount of code they need. This keeps the footprint as small as you need."

Automated security patching software has been included in the service pack, and a new feature, Systems Management Server, allows devices to be upgraded remotely.

Other improvements include Bluetooth networking support and a 'quick boot' feature.

The service pack will also enable devices to communicate via a wide variety of communications technologies, such as Remote Desktop Protocol v5.2.

The SP2 code supports Software Update Services to enable automatic scanning and deployment of Microsoft-issued security updates.

Microsoft has also unveiled Windows Embedded for Point of Service, based on Windows XP Embedded with SP2.

"I gather Microsoft has a lot of popularity in the US with their retail solution," commented Teresa Jones, senior research analyst at the Butler Group.

"I think they are selling this through the reseller community and then letting them customerise it for solutions. The same is true for much of the market, especially the enterprise resource planning sphere."

This is Microsoft's first sector-specific embedded operating system based on Windows XP. All previous systems were built around the Windows CE platform.