Intel's Developers Forum kicks off today, and UMID is showing off its upgrade to the M1 ultra mobile PC. The M2 runs Windows 7 (instead of XP), faster 1.2Ghz or 1.6GHz Atom processors, and no longer needs USB port dongles.

And while the M1 costs $600 with a 1.33GHz processor and 512MB memory, the upcoming M2 is expected to be $400 when it arrives around November. It will use the same keyboard and 4.8-inch (1024x600) screen, but design changes improve the screen angle, add an optical mouse and mouse buttons, and do away with the need for a USB port dongle.

A non-working prototype is felt up in the video below, but we should see the M2 running Windows 7 at IDF later this week. We'll let you know if it's up the task. [UMPC Portal via Pocketables and JKKMobile]

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