Niki,
The device runs on Windows Mobile 5 (or Windows Pocket PC 2003 SE, I'm not sure which. Most likely WiMo5), not XP.
No recycle bin in the OS. You'll need to install Resco Explorer for Recycle Bin functionality. Some data recovery dudes can get the lost files off the mem card -- if you meant an external SD/MiniSD/MMC card. I don't think stuff deleted off the RAM can be recovered.
SPB Backup is a really good backup program -- to make sure you can restore lost data. It can do automatic backups if you schedule them. SPB Pocket Plus is one program you'll absolutely need to get your programs and homescreen organized. SKTools or MemMaid are the best maintenance programs around. TCPMP is the best (free) media player around. It supports nearly all codecs. I don't like it for audio though. Pocket DVD Studio is to me the best and simplest DVD to PocketPC solution. Rips to WMV and DivX.
Conduits Pocket Player is the best music player/manager for the Pocket PC. Egress is IMHO the best RSS reader for the Pocket PC. SPB has brought out a new RSS reader called SPB Insight, but I haven't used it yet. Reviews are good. IM+ will let you chat on YMessenger, AIM & GTalk. A little pricey though. If it's only YMessenger you want, it is available free from yahoo now. 1Calc is a kick@$$ calculator with an included converter (converts nearly anything to anything). Including a currency converter you can update with the daily rates. SPB Time is a good time utility -- multiple alarms, clock screensaver, world time etc. PhatPad & PhatNotes are the best note-taking (& doodling, heh, heh) software. Again, a little pricey. Their Calligrapher add-on is really useful as a data inputpanel. It is a better handwriting recognition solution than Microsoft's built-in solution. TenGO is the greatest virtual keyboard, period. Opera is the best browser. NetFront is a close second.
I think I've covered software for most functions now.
I don't think for the O2s, firmware can be upgraded by the user. Not very sure about it though. I'm on Pocket PC PE 2003 SE (O2 XDA IIi), so no updates for me now :-)
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