It appears that Microsoft will change the requirements for running Windows on netbooks with the upcoming release of Windows 7. Paul Thurrott over at WindowsITPRO reports that, according to unnamed company, Microsoft is both removing some hardware limitations and adding new ones.
Manufacturers will be able to use touch controls, processors running up to 2GHz (but still single core) and any graphics processor on netbooks running Windows 7. Storage limits will increase to 250GB hard drives or 64GB SSDs (up from 160GB and 32B respectively).
On the other hand, maximum screen size will drop from a maximum of 12.1-inches to 10.2-inches.
Source: WindowsITPro.com