Microsoft plans to respond to problems of getting Netbooks to upgrade to their latest OS by offering Windows 7 on a thumb drive.

The move follows Microsoft’s attempts to solve the problem of installing their OS on to machines that do not have CD or DVD drives.

Microsoft’s failed OS, Windows Vista was incompatible with most Netbooks and the company had to continue to sell their much older Windows XP to notebook users.

There are, however, other options to install the OS on to Netbooks such as using an external drive or downloading it off the Net. Best Buy’s Geek Squad also offers services to upgrade to the new OS.

To complicate matters further, those Netbooks running on Windows XP, before upgrading their systems to the new OS will have to go through the tedious process of backing up their data, cleaning their systems and then re-installing their applications.

Microsoft tread a precarious line with Netbook users with the failed Vista, who are now slowly switching over to Linux. Microsoft's push for better compatibility of the Windows 7 with Netbook owners can help them recover lost ground.