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Looking for signs that netbooks are catching on? And even morphing into notebooks? Here's a few.

Netbooks were the big end-user gadget on display at the Windows Hardware Engineering Conference that ended Friday.

And all the Netbooks at a Microsoft booth were running Windows 7, Microsoft's next-generation operating system due next year.

A Microsoft person on the floor said that a lite version of Windows 7 will run on 1GB of memory and 16GB of (solid-state drive) storage. Higher-end Netbooks will have a 160GB hard disk drive, according to Microsoft "guidance."

Microsoft displayed Netbooks running Windows 7 at WinHEC

(Credit: Brooke Crothers)

This person also said something surprising. Dual-core Atom processors will be used in Netbooks. I tried to disabuse him of the notion that netbooks would get dual-core Atom processors. No, I said, it was Nettops (Atom-based desktops) that would get dual-core. But he assured me that vendors were planning to bring out dual-core Netbooks.

So, I contacted Intel. There are no immediate plans for dual-core Atom chips designed specifically for Netbooks, according to Intel. But what's stopping a netbook supplier from using a dual-core Atom 330 (designed for nettops) in a Netbook? Answer: nothing.

At 8 watts, the chip has a higher power envelope than single-core Atom processors, but 8 watts is still low compared with a mainstream Core 2 Duo processor. Other specifications for the Atom 330 include a core clock speed of 1.6GHz, 1MB of level-2 cache, and support for DDR2 667MHz memory.

Beginning to sound more like a low-end notebook? I think so.

Netbook market share appears to be growing too. A little more than 5 million Atom processors shipped in the third quarter of 2008, according to Shane Rau of IDC, a market researcher. "Will it add to the total market or will it eat into the total market? Another question might be is Atom eating into another processor brand such as Celeron (Intel) or Sempron (AMD)?"

Rau says that the total market can grow while Netbooks eat into notebook market share. "The TAM (Total Available Market) can grow even as Atom eats into another brand. But we don't know how it's shaking out yet," he said.

And here's evidence of Netbooks penetrating the consumer consciousness. Best Buy now has a separate category for Netbooks on its Web site. Right under laptop computers you'll see "Netbooks". Interestingly, the Netbooks category is ranked above desktops and most other "computer" categories.

Other signs. Dell has a 12-inch laptop, the Inspiron Mini 12 based on the Atom processor. Is this a Netbook or notebook? You tell me.

Update on July 27 at 10:00 a.m. with additional information

Dell has issued a system update for a well-publicized problem with Nvidia chips.

The company said Friday it has posted BIOS updates for an Nvidia graphics chip glitch affecting laptop computers. Citing Nvidia information, Dell said the "affected GPUs (graphics processing units) are experiencing higher than expected failure rates causing video problems."

"The issue is a weak die/packaging material set, which may fail with GPU temperature fluctuations. If your GPU fails, you may see intermittent symptoms," the Dell blog said.

Dell said the symptoms include "multiple images, random characters on the screen, lines on the screen, no video." But added this caveat: "if you are already experiencing video-related issues like the...points above, updating the BIOS will not correct them. Dell will provide support for customers who have experienced GPU failure according to the terms of the system warranty."

Dell laptop systems potentially affected by Nvidia glitch with update file name

(Credit: Dell)

Dell is recommending that users flash their system BIOS. "Each of these BIOS updates...modifies the fan profile to help regulate GPU temperature fluctuations," Dell said.

New systems are shipping with the BIOS update, according to Dell.

On July 2, Nvidia said it would take a one-time charge of between $150 million and $200 million to cover "anticipated warranty, repair, return, replacement, and other costs and expenses, arising from a weak die/packaging material set in certain versions of its previous generation GPU and MCP (multi-chip package) products used in notebook systems."

Intel's newest Core 2 Duo processor has finally found its way into most models in the world's two largest PC makers' notebook lines.

With some exceptions. Hewlett-Packard (HP) will offer the 45-nanometer Penryn processor for the first time in its 8700 performance line in the next two weeks.

HP 8700 performance series will get Penryn chip upgrade in the coming weeks.

(Credit: Hewlett-Packard)

Intel's 45nm Core 2 Duo Penryn processor was announced back in January as a significant upgrade from the previous "Merom" 65nm processors. Penryn boasts improved power saving features and generally better (though not phenomenally) performance at the same clock speed due, among other things, to a larger cache memory. On certain multimedia tasks, there is up to a 40 percent improvement in applications using Penryn's new SSE4 instructions.

Dell's newest Penryn-based offerings include Latitude and Precision notebooks, which are business and engineering lines respectively. Dell is already offering Penryn on its consumer line of notebooks, including the Inspiron and XPS lines. Certain high-end XPS models on Dell's Web site, such as the XPS M1730, can be configured with Penryn processors only. One M1730 SKU offers Penryn T9300 (2.5GHz), T9500 (2.6GHz), and X9000 (2.8GHz) chips only.

One of the notable exceptions is the low-end Dell Vostro line which offers only the older line of Core 2 Duo processors and AMD's Turion 64 X2 chip.

While HP was very quick to bring Penryn to its consumer and business lines, there are only limited processor selections in its business line. The HP 6510, 6710, 6720, and 6820 models offer either the Penryn T8100 or T8300, according to HP spokesperson Mike Hockey. But online configuration options are not offered with faster Penryn chips.

The HP 8700 performance line, which includes mobile workstation models, does not offer the Penryn chip yet. This is expected to change in the next week or so when HP, for the first time, includes configurations with the processor, Hockey said.

As expected, Dell is now offering Inspiron notebook PCs with the Intel Core 2 Duo "Penryn" chip as an optional configuration. This is the first time that Dell has included the 45-nanometer processor as an option in the consumer-oriented Inspiron line.

Dell Inspiron 1420

(Credit: Dell)

An Inspiron 1720 with a T9300 (2.5GHz, 6MB cache) processor, 17-inch (1440x900) screen, Intel Graphics Media Accelerator X3100, 2GB shared dual channel DDR2 memory, and a 250GB SATA hard drive (5400RPM) is priced at $1,299.

An Inspiron 1420 with a T8300 (2.4GHz, 3MB cache) processor, 14.1-inch (1280x900) screen, Intel Graphics Media Accelerator X3100, 2GB shared dual channel DDR2 memory, and a 160GB SATA hard drive (5400RPM) is priced at $1,024.

For an extra $200, a 256MB Nvidia GeForce 8600M GT video card is available with the 1720. On the 1420, a 128MB Nvidia GeForce 8400M GS is available for an additional $100.

Launched last month, Intel's 45-nanometer mobile processors generally pack around 400 million transistors. One of the most salient features is the larger cache. The higher-end processors integrate 6MB of cache memory versus 4MB for the older 65-nanometer "Merom" generation, and the lower-end chips integrate 3MB vs. 2MB for the Merom-class processors. A larger cache generally means better performance.

Dell's XPS M1330 uses the Penryn chip.

(Credit: Dell Computer)

Dell is in the process of updating its notebook line with Intel's newest 45-nanometer mobile processors. As reported earlier this week, Dell indicated it would refresh its lineup with Intel "Penryn" processors.

This comes as Dell moves much of its AMD-based lineup to retail stores such as Wal-Mart and Staples.

Dell will offer the Penryn processors in its Inspiron and XPS lines, according to a Dell spokesperson. One of the first U.S. models is already available online. The XPS M1330 can be configured with a Core 2 Duo T9500 (2.6GHz, 6MB cache), 2GB of memory, Intel X3100 graphics, and a 120GB hard drive. The system is priced at $1,674. The same basic configuration with a T8300 chip (2.4GHz, 3MB cache), drops the price to $1,274.

Dell, in the coming weeks, will also offer Inspiron models with the new Intel processor.

Though announced in early January, Penryn-based mobile systems are just now starting to hit the market in volume. For example, Toshiba announced this week a 4.6-pound, 13-inch form-factor model, the U305-S2816, that uses the Penryn T8100 (2.1GHz, 3MB cache). It starts at $1,349.99. And Hewlett-Packard bulked up its consumer notebook lines with Penryn-based models last week.

The simultaneous introduction of new Penryn-based models and the repositioning of some AMD-based notebooks from Dell's online store to retailers such as Wal-Mart and Staples is coincidence and not related, said Anne Camden, a Dell spokesperson. She also said that models in the Inspiron, Vostro, and Latitude notebook lines are available currently with AMD processors.

At retail, at least, AMD has a strong presence. For instance, of the seven Dell systems and package deals listed on Wal-Mart's Web site, only one of them is Intel-based. The rest are AMD. The question is whether a retail-heavy presence--where profit margins are typically thin--bodes well for AMD or not.