When it comes to mobile development on .NET platform I've only developed for Win CE and Win Mobile, but a provider offered me Win XP Embedded on some industrial computer we're going to use.
The question is, how do you programm for this OS, is this just a minimized version of Desktop's Win XP?, should I use the same kind of projects and framework targeting on Visual Studio?
Windows CE and XP Embedded are just two tiers of the same product. They both have very similar tool-chains. They both use the same compartmentalized technology, if you are similar with Win CE, it wont be too big of a change going to XP Embedded.
The Windows Embedded website. Windows CE is the "Compact" line, and XP Embedded is the "Standard" line.
To answer your question in your post. XP Embedded is more like a feature rich Win CE than a striped down XP.