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Major difference between the two is you cant join in domain if your system is having home edition . that is why they named it as home edition and professional edition
Microsoft is targeting Home Edition at consumers and Professional at business users and power users.
Professional Edition is a strict superset of Home Edition. Everything we can do in Home Edition, we can do in Professional Edition.
Pro features that aren't in Home Edition
The following features are not present in Windows XP Home Edition.
Power user
· Remote Desktop
· Multi-processor support
· Automated System Recovery (ASR)
· Dynamic Disk Support
· Fax
· Internet Information Services/Personal Web Server
Security
· Encrypting File System
· File-level access control
· "C2" certification
Management
· Domain membership
· Group Policy - Since Home Edition cannot be used to logon to an Active Directory domain, Group Policy--whereby applications, network resources, and operating systems are administered for domain users--is not supported either.
· IntelliMirror
· Roaming profiles
Corporate deployment
· Multi-language support
· System Preparation support
· RIS support
64-bit Edition
· Microsoft is shipping a64-bit version of Windows XP for Intel Itanium systems that mirrors the Professional Edition feature-set.
Networking features
The following networking features are not included in Home Edition:
· The user interface for IPSecurity (IPSec)
· SNMP
· Simple TCP/IP services
· SAP Agent
· Client Service for NetWare
· Network Monitor
· Multiple Roaming feature