Could 'Menlo' signal a change in Microsoft's mobile strategy?

ZDNet: "I’ve been digging for a few months for information about two new Microsoft codenames and have come up with few clues. But I’ve decided to share what I have been able to surface in the hopes that others who might have additional pieces to share might help fill things in.

Microsoft “Menlo” is a hush-hush research project which seems to be focused on replacing Windows CE (known officially these days as Windows Embedded Compact) Compact Edition (CE) with Windows NT inside of mobile devices, according to my sources. “Experiment 19″ is a graphics platform researchers are building to complement Menlo, my sources have told me."