Not that Microsoft are worried, of course not.
KrispyChips via Slashdot
“In what could be a first Microsoft is working to create a special build of Windows, just because Windows doesn’t run very well on a certain computer. ASUS’ runaway success Eee PC is now ‘officially’ available with Windows XP, but (according to APC magazine) is not exactly a great experience. There are none of the nice pre-loaded apps that come with the Linux version, for example. And XP has some real problems coping with the screen size and limited system specs of the unit. As a result, ASUS says it is going back to Microsoft and working on a special XP build that will be lightweight and more suited to UMPCs.”