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Microsoft's long and winding road toward regaining lost ground in the cell phone business will reach an important milestone in Barcelona next month.

At the annual Mobile World Congress event, Microsoft will at long last show off Windows Mobile 7--its oft-delayed major revamp of the decade-old Windows CE code base that has been at the core of its mobile operating system since the days of challenging the Palm Pilot.

Sources told CNET that Microsoft is still planning to finalize the code for Windows Mobile 7 by summer in order to have the new software on devices that ship before the end of the year.