Microsoft is mulling over the idea of offering their new OS, Windows 7, on a USB drive to allow Netbook owners to more easily upgrade their machines. Most lightweight Netbooks don’t have CD drives these days.

Memory hungry OS, Windows Vista, failed miserably (how slow can you go!) on Netbooks forcing Microsoft to continue selling Windows XP as its answer to the low-cost notebook market.

Matt Bonin, a merchant director at Best Buy, said this week that the company is aiming to work with Geek Squad to develop services to streamline Windows 7 upgrades. As for Netbooks, he said the company recognises the challenge they present and said the store already offers services to load other types of software, such as antivirus programs.

There are a few niggles though for current XP owners that are looking to upgrade straight to windows 7….you must back up your data and then perform a fresh installation and then re-install whatever apps you had before!