What's so special about Windows Embedded?
Perhaps the folks who've said "Windows Embedded is different" could tell us, in detail, with examples and evidence and links to definitive sources, what they think is so special, so different, about Windows 2K/XP Embedded. (Perhaps they could also tell us where in the WIndows world they are employed?)
Windows XP Embedded *is* basically just Windows XP, that's the point of it (unlike say Windows CE, which has little in common other than the name). Any difference between XP and XPe is largely in the commercial arrangements (price, licencing, discounts, long-term support, etc), with a few limited technical differences such as official support for network booting, and some related trickery eg componentizable OS, support for read-write files on a readonly media filesystem, etc.
Don't take my word for that, see what Microsoft's XPe people have to say:
http://www.microsoft.com/windowsembedded/en-us/products/wexpe/default.mspx
http://download.microsoft.com/download/e/0/2/e02165a2-4f29-4741-b89c-30cbd48bff58/Windows_XP%20Embedded.pdf
Windows HomeServer was meant to be tried, tested and trustable because it was only a minor variant of mainstream Windows Server 2003. Was Windows Home Server therefore secure, reliable, and bug free? No, it was silently corrupting (and permanently destroying) user data even in pure-Microsoft setups with no third party apps, and doing so for over a year before Microsoft fixed a bug in a badly written and inadequately tested HomeServer-specific filesystem component:
http://support.microsoft.com/default.aspx/kb/946676/en-us?spid=12624
http://www.theregister.co.uk/2008/03/11/microsoft_windows_home_server_bug/
Fortunately the same can't happen to any unique bits of XP Embedded that aren't used elsewhere, right?
There are good reasons why Windows isn't used, and won't be used, in any safety-related or safety-critical systems on aircraft. There's plenty of experience in the UK railway industry (where Windows *has* been used for functionally important systems on some trains) that says using Windows in the wrong place is bad for you - one well known problem in the industry is the frequent train delays caused by unplanned reboots of the Windows-based systems involved in certain safety interlocks on certain trains. Still, what do the aerospace and rail industries know about engineering reliable systems? (The rail industry has had its problems, and using inappropriate technology is certainly part of that).