Microsoft is considering offering Windows 7 on a thumb drive to allow Netbook owners to more easily upgrade their machines, a source tells CNET News.

The move, which is still under consideration, is one of several things Microsoft has looked at to try to make it convenient to upgrade machines that don't come with a CD or DVD drives.

Microsoft executives have said that they recognize that upgrading Netbooks poses a challenge and are exploring ways that the company can make it easier. In an interview on Thursday, Senior Vice President Bill Veghte said that Microsoft had nothing to announce on that front.

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