Source -Menlo is the latest codename to be thrown in the operating system development mix reportedly being built in Redmond, adding a new twist to the cocktail already featuring labels such as Midori and Singularity. There’s little information from Microsoft on Menlo, but the moniker is mentioned on a few of the Redmond company’s websites, indicating that it is indeed real. A Microsoft Research project, Menlo is like a number of the company’s R&D efforts kept under a tight lid and away from prying eyes.
However, some details did manage to slip out, and it appears that the newly unearth Microsoft Research project is somehow connected to the evolution of Windows CE. According to Mary-Jo Foley, the software giant is exploring a possible replacing of Windows Compact Edition (CE) with Windows NT. Windows CE is a special platform from Microsoft, designed to power a range of hardware restrained mobile devices.
Microsoft Menlo OS Project, from the Makers of Singularity - Details are scarce - Softpedia