Does this system come with the Atom processor already integrated onto the motherboard?

Processor is installed on motherboard. All you need to do is add memory modual and hard drive (either a conventional spinner or a solid state drive will work but watch compatability on SSHD). Then you just have to install OS on hard drive. You can use a USB optical drive for this or install one into the XS35V2 as ther is a provision for the optical drive as well.

Does this use laptop or desktop memory?

Laptop. It takes a single stick. I have 4gb in mine.

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More Resources

Shuttle;XS35GS;XS35V2_heatsink_RAM.pdf - Shuttle

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Shuttle XS35V2 Intel NM10 Black Mini / Booksize Barebone System

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Intel Atom D525 (1.8GHz, Dual-Core)
DDR3 800

Specs

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Learn more about the Shuttle Computer XS35V2

General
Brand	Shuttle
Model	XS35V2
Color	Black

CPU Supported
CPU Type	Intel Atom D525 (1.8GHz, Dual-Core)

Chipset
North Bridge	Intel NM10

Memory Supported
Memory Type Supported	DDR3 800
Max Memory Supported	2GB

Graphics
Integrated Graphics	Intel GMA 3150

Audio
Channel	8 Channel

Communications
Max LAN Speed	1Gbps

Extension Bays
2.5" Internal Bays	1

Front Panel Ports
Card Reader	Yes

Back Panel Ports
VGA	1 x D-sub
RJ45	1

Power Supply
Power Supply	40W

Physical SPEC
Dimensions	9.9" x 6.4" x 1.5"

Additional Information
First Listed on Newegg	May 13, 2011

Warranty & Returns

Warranty, Returns, And Additional Information

Warranty

Limited Warranty period (parts): 3 years
Limited Warranty period (labor): 3 years
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Return Policies

Return for refund within: 30 days
Return for replacement within: 30 days
This item is covered by Newegg.com's 30-Day Return Policy.
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Manufacturer Contact Info

Manufacturer Product Page
Manufacturer Website
Support Phone: 1-626-820-9000
Support Website
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Item#: N82E16856101118