Well just about every source you read tells the story differently. On top of this confusion, everyone's trying to tell a complete story from 140 characters.

Some site called it "extensive negotiations" with the aim to "deepen cooperation". Now Nokia has always had intentions with Microsoft, and as I understand it its mostly been about being able to read and edit Word (Office) files on smartphones. So far we've really gotten nowhere on this, so I think this might be one area where Nokia will "deepen cooperation".

WinPhone7 will be all about cloud services, and their Office apps tie deeply into this cloud. Maybe Nokia will be given access to the cloud to finally offer something worthwhile in the Ovi services. After all, in Europe, Nokia is the #1 businessphone manufacturer, so this would make perfect sense to finally attempt to deliver on a promise.

Also, Nokia has a "everything for everyone" policy (here I explain what I mean in more depth: http://peakmob.blogspot.com/2010/10/...ept-about.html , scroll down to the mid-heading about "everything for everyone"), and I don't see WinPhone7 fitting into this picture in any way.

Murtazin, the one who got the rumour mill running again, also tweeted 13th Aug 2010 that Nokia would make a low-end MeeGo for cheaper phones. Now if he's so realiable, then this must be true as well. And what would then be the point of having basically four operating systems: Symbian, "MeeGo pro" and "MeeGo lite" AND WP7? Well there is no point, and so most likely "MeeGo lite" would replace Symbian.

So in this light the only viable option I see is that Nokia does one line-up of WinPhone7 devices max, and I'm thinking maybe 5-10 devices over 1.5yrs as a kind of niche or luxury line. Or perhaps the XpressMusic lineup could be turned into WinPhone lineup, but I don't see it taking over as a major OS for Nokia.