Above story is true, backed up with emails evidence from Microsoft to Intel intern management. Those evidences are compiled after a class action law suit slapped to Microsoft, by the customers who purchased computers and laptops with the particular “Windows Vista Capable” sticker.
Now Microsoft must face an ugly class action law suit for this “confusing sticker”, and backed with solid evidences like those; they should be preparing a large sum of money to settle it down. Read parts of the stories at Engadget here & the whole story at PC World here, great articles. Let’s just hope when the Windows Mobile 7 finally released (with it’s high-end UI & iPhone’s UI look alike), there wouldn’t be such “confusing stickers” pasted on mobile phones that run it.