Microsoft's Helner hinted that some of IE would remain in the "E" versions of Windows 7. "The E versions of Windows 7 will continue to provide all of the underlying platform functionality of the operating system," he said. "Applications designed for Windows will run just as well on an E version as on other versions of Windows 7."

Presumably that would include not only third-party applications, but also Microsoft's own, such as the online Windows Update service that's crucial for keeping a system up-to-date with security patches.

His explanation was similar to the one given by Microsoft back in March, when it added a to Windows 7 that lets users disable IE8, as well as several other integrated applications.

Helner acknowledged that stripping IE8 from Windows 7 for EU customers may not satisfy regulators. "Our decision to only offer IE separately from Windows 7 in Europe cannot, of course, preclude the possibility of alternative approaches emerging through Commission processes," he said.

One of the most-discussed solutions would be a that would appear when a PC user first tried to connect to the Internet. The screen would offer users several browser choices that would then either be activated -- if all were pre-installed on the machine -- or downloaded and installed.