Last month we reported that Microsoft was developing a version of Windows 7 specifically for netbooks and sub-notebooks. Today, news has emerged of what they meant — and it isn’t great. Microsoft will in fact be six versions of Windows 7 and the Windows 7 Starter Edition is the one aimed at netbook users and computers in emerging markets.

Unfortunately, despite most people agreeing that the Windows 7 beta runs fine on netbooks, this Starter Edition that may ship with new netbooks is very much dumbed down, or as Liliputing puts it, a “crippled version” of Windows 7.

You do get the new taskbar and Home Group features but can only run up to three applications at any one time — which is very limiting, especially if you use multiple IM programs for example while running your web browser and what not.

Whether the Starter Edition ships with netbooks is the choice of netbook makers. Microsoft is offering companies the choice of Windows 7 Starter Edition or Windows 7 Home Premium (the typical version that most PCs will use). The issue with the makers will be whether to pay what an extra cost to purchase Home Premium or ship their machines with the toned down Starter Edition.