Mirosoft's Brandon LeBlanc posted some details on the upcoming Windows 7 Starter Edition

It is important to note that Windows 7 Starter still includes only a subset of the features offered in the higher editions of Windows 7 such as Windows 7 Home Premium, Windows 7 Professional and above. Windows 7 Starter does not include:

Aero Glass, meaning you can only use the “Windows Basic” or other opaque themes. It also means you do not get Taskbar Previews or Aero Peek.
Personalization features for changing desktop backgrounds, window colors, or sound schemes.
The ability to switch between users without having to log off.
Multi-monitor support.
DVD playback.
Windows Media Center for watching recorded TV or other media.
Remote Media Streaming for streaming your music, videos, and recorded TV from your home computer.
Domain support for business customers.
XP Mode for those that want the ability to run older Windows XP programs on Windows 7.

Let’s talk about Windows 7 Starter