The company had planned to ship the upgrade CDs last week to iPaq owners who had requested them but has delayed shipment until the first week in November, Compaq spokeswoman Nora Hahn said.
"We're just finishing up some additional testing for consumers," Hahn said.
Pocket PC 2002 is the updated version of Microsoft's operating system for handheld computers. A Microsoft representative said the software has already been delivered to Houston-based Compaq.
The upgrade is free to consumers who purchase an iPaq between Sept. 6 and Nov. 30. After that, the upgrade will cost $29.95.
IPaq models, such as the H3600 series and the H3100 series, feature built-in flash memory that allows consumers to upgrade to the latest version of Pocket PC. New iPaq handhelds are already available with Pocket PC 2002.