The .NET Micro Framework v2.0 was released today. It seems odd to have a managed environment in 512KB. It makes me happy though, games (XNA) and embedded programming can be done with C#. I don't have to step into C++ land. It looks like Microsoft is aiming at every size of device.

.NET Micro Framework -> Windows CE -> Windows XP embedded

I'm amazed at how much of the core .Net Framework works here..things like System.Xml and System.Drawing.2D (from what I can tell). The micro framework is used for SlideShow devices so I guess it makes sense.

Official Site

Intro Webcast

Sample Chapters from Embedded Programming with the Microsoft® .NET Micro Framework