Here's a good article on "Slot 1 XIP" vs. "Slot 0"
http://blogs.msdn.com/hegenderfer/ar...r-part-ii.aspx
note that it differs slightly for wm6.5 as theres more than one "Slot 1", which is what allows us to have more xip modules, which is what borks when you are using a non-native kernel, which is why you need to flatten some
XIP was truely intended for devices running NOR flash (older wm5 and pre-wm5 devices)
With NOR flash you can eXecute In Place.. thus not having to create a local copy in your device's memory.. saving (what was at the time) precious little ram..