I've been speaking to a bunch of folks recently about developing embedded solutions. It's quite amazing how much of this is happening in the market. It is really under the radar of the core business, but it is a major growth area.
Now, there is confusion as to what options developers have. It really boils down to these two platforms:
Which to Choose? Have a read of this whitepaper - Evaluating Windows CE .NET and Windows XP Embedded.
And in Australia, we have ROK Technologies who have been in this space since 1996 and can help developers build great amazing solutions.