Was busy after the MEDC2006 i.e to office after 3 days so didn't get time to update earlier
On 2nd day attended the WinXP embedded track to see what it was all about. As it turns out WinXPEmbedded is nothing but componentized WinXP which is normally used in ones PC. Currently only binary modules are provided by MS and that too only for the x86 architecture. As far as drivers are concerned standard PC drivers can be used in WinXPe. Even thou MS seems to have WinXPe for other architectures (powerpc for sure, well almost, why? because Xbox360) internally they aren't giving it to others.
As of now because of lack of support (atleast outside MS) for NonX86 architectures, Relatively large size of resultant WinXPe images (unless MS allows one to build up the GUI and other standard functionalities at the higher level as one likes) and lack of source code support would make it a difficult candidate to use in the embedded world.
One thing I liked about the MEDC2006 india was that it allowed the people who attended the conference to interact with the key speakers and also arranged hands-on tracks inturn handled by these key speakers.