The idea is simple: Using the Windows CE emulator, I could have my entire “internet communications system” on a virtual machine that I carried around with my on my USB keychain. I could essentally plug it into the USB port of any machine running Windows, and bring up the emulator and use Internet Explorer, Messenger, Inbox, etc. Version 2.0 is now based off the new ARM based Device Emulator which can run native Pocket PC binaries. Yes, you read that correctly – with this version, you will be able to run most Pocket PC apps from emulation. Link.
HOW TO – Portable CE 2.0