After much speculation and concern Microsoft has put out official word that the OLPC XO laptop will be made available with the Windows XP operation system. Nicholas Negroponte has been trying to work with Bill Gates and Microsoft for years to get the Windows OS for the laptop, but Microsoft had been reluctant due to the rival Linux OS running on the machine.

The writing was on the wall when Microsoft announced that they were going to keep the XP operating system around a little longer for use with Ultra Low Cost PC’s. Microsoft made a custom version of the OS for use with the XO laptop to work with its hardware. The laptop is expected to start shipping in late summer or early fall with the ability to dual boot with both Linux and Windows XP, letting the owner decide.

Gateway recently unveiled some new desktop PCs - some of which are new models and the rest of which are revamps of existing PC line ups. These new computers are mostly available now, with prices ranging from around $550 to $3,500.

Gateway specifically updated or added new FX, GT and DX Series models. The one pictured above, for example, is the FX7026. All of these computers offer either Intel or AMD processors and at least one available at retail still has Windows XP. For more details, check out the full press release after the jump.

Our monthly check of new Microsoft updates revealed today the long awaited Windows XP Service Pack 3. We are in the middle of downloading the update right now so we can’t speak to performance, but we wanted to give you a heads up it is now available.

If you’ve been eagerly watching your Windows Update on XP waiting for SP3 to show up your wait is over; it’s not coming, or at least not quite yet. At what seemed like a very last minute decision, Microsoft on Tuesday delayed the launch of Windows XP Service Pack 3 due to a compatibility glitch with Microsoft Dynamics Retail Management System software. The release was scheduled to be available through Windows Update on Tuesday and has already been released to manufacturing and volume customers last week.

“In the last few days, we have uncovered a compatibility issue between Microsoft Dynamics Retail Management System (RMS) and both Windows XP SP3 and Windows Vista Service Pack 1 (SP1),” said the firm.“In order to make sure customers have the best possible experience, we have decided to delay releasing Windows XP Service Pack 3 (SP3) to the web.”

Chris Keroack, release manager for Windows XP Service Pack 3, has announced that the new service pack has been released to manufacturing (RTM) and is working its way to the OEM’s right now. For the rest of us, Microsoft is planning on getting XP SP3 online and available through Windows Update on April 29, along with its associated documentation.

This release is the first of its kind for XP since Microsoft released SP2 back in 2004, and is a welcome site to users of XP anywhere and especially to those that have battled with Windows Vista and lost, or at least came out slightly injured. Included in the update is a cumulative security update along with some performance and stability enhancements. They’ve also included some features to help integrated new Windows Vista OS’s along with existing XP machines on a network.

Microsoft has announced that the plan for the general end of shipping Windows XP has been extended a couple of years, at least for the Windows XP Home edition. The latest plan for the end of most sales of XP was dated on June 30, 2008 but the advent of a new market of ultra low cost PCs (ULCPCs) has made Microsoft change there tune on forcing everyone onto the new Vista system.

Microsoft has just released Windows Vista SP1 which is usually a good milestone for those looking at upgrading to the next version of Windows, and is a point at which Microsoft helps push them along, but in the case of these UPCPCs, the Vista OS is just to big and expensive. The OLPC (supposed $100) XO laptop is one such machine that could still take advantage of the XP OS but would be forced to stick with Linux or look elsewhere if XP were phased out.