The layoffs, 1,400 of which come immediately, appear to be a first for Microsoft, which was founded in 1975, aside from relatively limited staff cuts the software company made after acquiring companies.

The company announced the cuts as it reported an 11 percent drop in second-quarter profit, which fell short of Wall Street's expectations. The company also said it is unable to offer profit and revenue guidance for the rest of the year, because of the market volatility.

Public documents describe the new Gates entity -- bgC3 LLC -- as a "think tank." It's housed within a Kirkland office that the Microsoft co-founder established on his own after leaving his day-to-day executive role at the company this summer.

Is this Bill Gates' next big business? A Gates insider gives an emphatic no -- saying it's not a commercial venture but rather a vehicle to coordinate the software mogul's work on his business and philanthropic endeavors.

However, bgC3 will also oversee Gates’ personal pursuit of breakthrough ideas in science and technology. The insider said the goal isn't necessarily to create new companies, although ideas could be passed along to Microsoft, the Bill & Melinda Gates Foundation -- or others - as it makes sense.

Whatever the ultimate role of the company, the circumstances surrounding its creation provide a behind-the-scenes glimpse into the new era of Gates' life.

Microsoft, which broke off talks in early May to buy the Internet company for $47.5 billion, said it would resume discussions immediately if a new board were elected at Yahoo's August 1 stockholder meeting.

The Microsoft statement came after Icahn, the billionaire financier who holds over 4 percent of Yahoo, issued his own statement that he had "spoken frequently" to Microsoft CEO Steve Ballmer over the last week. Previously, the two had not spoken.

Ballmer told Icahn that a big impediment to any Yahoo deal was his concern that the current board could "mismanage" the company while the deal awaits regulatory approval, a process that could take nine months or more, according to Icahn.

In an interview, Icahn argued that his proposed dissident board slate would make Microsoft feel more secure in risking a large sum of capital to complete the deal during the regulatory approval process.

In a statement, Microsoft said it's "unfortunate" that Yahoo "has not embraced" its proposal to combine the two companies, and the rejection of the offer "does not change our belief in the strategic and financial merits of our proposal."

The company also hinted that it may take the offer directly to Yahoo's shareholders, a move that could result in a hostile takeover.

"As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo's shareholders are provided with the opportunity to realize the value inherent in our proposal," Microsoft said in its statement.

Earlier Monday, Yahoo formally rejected Microsoft's bid to acquire the company in a half-stock/half-cash purchase, saying it undervalued Yahoo.

A small but vocal minority on Flickr are already staging online protests at the prospect of a Microsoft takeover. Flickr is one of several popular Web 2.0 websites owned by Yahoo that loyal users fear will suffer under Microsoft ownership.

As soon as the news hit the wires that Microsoft is proposing a $44.6 billion bid for Yahoo, Flickr users began posting anti-Microsoft images, satirical "Flickr Live" logos and announcing they will abandon Flickr if it falls into Microsoft hands, fearing such a move would mark the beginning of the end.

"Well then, I'm outta here!" announced one Flickr user who goes by the name Judland.

While Microsoft has established its dominance on the desktop, its web properties lag behind those of Yahoo and others.

When it comes to building or acquiring hip, community-focused websites, Microsoft has fumbled where Yahoo has thrived. Last year, Microsoft tried its hand at a community site to compete with Flickr by adding photo-sharing capability to its Windows Live web service. But Windows Live Spaces doesn't have the cutting-edge user interface or the Web 2.0 cache that Flickr has. It also doesn't have the closely-knit community of passionate users that makes Flickr so successful.

You can try it for yourself in Excel by multiplying 850 by 77.1. Excel will return 100,000 instead of 65,535. Similar operations that should return 65,535 will also come back incorrect, and there's a problem with 65,536, too. The problem is only present in Excel 2007; earlier versions of Excel are not affected.

Microsoft has traced the problem back to a floating point issue and how results are displayed within a cell in Excel. Microsoft says the calculation is actually done correctly, it's just that when it comes time to show the result on screen, Excel chokes. For example, if you multiply that "100,000" above by 2 and put the answer in a new cell, you'll get 131,070, not 200,000. However, this isn't reliable either: Try adding one and you get 100,001, not 65,536.

So what, specifically, are the values that cause this display problem? Of the 9.214*10^18 different floating point numbers (floating point on wikipedia) that Excel 2007 can store, there are 6 floating point numbers (using binary representation) between 65534.99999999995 and 65535, and 6 between 65535.99999999995 and 65536 that cause this problem. You can't actually enter these numbers into Excel directly (since Excel will round to 15 digits on entry), but any calculation returning one of those results will display this issue if the results of the calculation are displayed in a cell. All other calculation results are not affected.

The screen may go blank when you try to upgrade the video driver. For more information, click the following article number to view the article in the Microsoft Knowledge Base:
932539 The screen may go blank when you try to upgrade the video driver on a Windows Vista-based computer

The computer stops responding, and you receive a "Display driver stopped responding and has recovered" error message. You can restart the computer only by pressing the computer's power button.

The computer stops responding or restarts unexpectedly when you play video games or perform desktop operations.

The Diagnostic Policy Service (DPS) stops responding when the computer is under heavy load or when very little memory is available. This problem prevents diagnostics from working.

The screen goes blank after an external display device that is connected to the computer is turned off. For example, this problem may occur when a projector is turned off during a presentation.

There are stability issues with some graphics processing units (GPUs). These issues could cause GPUs to stop responding (hang).

Visual appearance issues occur when you play graphics-intensive games.

You experience poor playback quality when you play HD DVD disks or Blu-ray disks on a large monitor.

Applications that load the Netcfgx.dll component exit unexpectedly.

Windows Calendar exits unexpectedly after you create a new appointment, create a new task, and then restart the computer.

Internet Connection Sharing stops responding after you upgrade a computer that is running Microsoft Windows XP to Windows Vista and then restart the computer.

The Printer Spooler service stops unexpectedly.

You receive a "Stop 0x0000009F" error when you put the computer to sleep while a Point-to-Point Protocol (PPP) connection is active. For more information, click the following article number to view the article in the Microsoft Knowledge Base:
931671 Error message when you put a Windows Vista-based computer to sleep while a PPP connection is active: "STOP 0x0000009F"

A Surface computer is able to recognize physical objects from a paintbrush to a cell phone and allows hands-on, direct control of content such as photos, music and maps. Surface turns an ordinary tabletop into a dynamic surface that provides interaction with all forms of digital content through natural gestures, touch and physical objects.

The new product is aimed directly at hotels, retail establishments, restaurants and public entertainment venues and should be commercially available towards the end of the year.

It's an interesting product in that it's completely out of left field. Microsoft gives examples of ordering a beverage during a meal with just the tap of a finger and quickly browsing through music and dragging favorite songs onto a personal playlist by moving a finger across the screen. Build this into a bar and you'd get one-touch beer service although I'm not sure if they've found a way to work out when your beer glass is empty so replenishment becomes automatic, maybe in a later version.

Though consumers can download Vista over the Web for the first time, Microsoft CEO Steve Ballmer told one audience that, as in the past, most consumers will switch to Vista only when they buy new computers. More than five years in the making, Vista was released for businesses Nov. 30, but the unveiling for consumers only came Tuesday. The software retails for $100 to $400, depending on the version and whether the user is upgrading from Windows XP.

Vista comes as changing dynamics of computing - notably the rise of open-source software and Web-based services that replicate what traditionally could be done only on a desktop computer - are threatening Microsoft's dominance in the industry.

But Gates contended that the operating system has a higher profile than ever before, as the PC has morphed from a souped-up typewriter to a networked entertainment center, personal media library and gateway to the Internet.

The software is a major overhaul of Windows and updates many of the core technologies. New elements include improved security, an improved 3D interface, plus new sound and networking technologies.

Vista, known as Longhorn during its gestation, will be available in six separate versions to match the differing needs of computer users.

Three of these are tuned for businesses, two are for home users and one will be for developing nations.

Microsoft has yet to give details of the prices of the different versions but it has released information about what PCs will have to do to run the software. Many PC makers are now selling "Vista-ready" computers.

The operating system has been going for 8 years now, and Microsoft is encouraging anyone still running it to switch to Windows XP! Of course, if your machine isn't quite fast enough for XP, you're a bit stuck.

The switch-off means no more telephone support, and no security fixes - meaning that the internet is about to become a very dangerous place for Windows 98 users. With no updates for the numerous security issues and viruses that arrive each week, a box is sure to be hosed before long.

The switch-off was originally due to happen in 2003, but Microsoft delayed it because a number of developing countries are still using Windows 98.

According to a statement today, Chief Technical Officer Ray Ozzie will immediately take the title chief software architect, working side by side with Gates. Chief Technical Officer Craig Mundie will immediately take the new title of chief research and strategy officer

Ballmer on whether he feels pressure to step down, based on shareholder discontent: "No, not at all. You've got the two biggest shareholders -- we don't own 50 percent of the company -- but you've got the two biggest shareholders in the room. And with everything we know about the company, two things are true. No. 1, we're steering the investments that the company is making, that people maybe were reacting to. And No. 2, we've been part of a board of directors that has put the company on a path to buy back stock. ... We bought stock at 25, 26, so obviously the board and Bill and I think it's a good price. So is the company in good shape and doing the right things? I think we'd say the answer to that question is yes."

Picking our list wasn't exactly rocket science; it was more like group therapy. PC World staffers and contributors nominated their candidates and then gave each one the sniff test. We sought the worst of the worst--operating systems that operated badly, hardware that never should have left the factory, applications that spied on us and fed our data to shifty marketers, and products that left a legacy of poor performance and bad behavior.

Under the idea, which Microsoft is introducing this week, people would be able to get a PC for their home with a mechanism that charges them depending on how much computing they use. Consumers would pay for about half of the PC upfront and then, say, 50 cents or 75 cents per hour of use. After several hundred hours of paid use, they would then own the PC outright.

"The real goal of FlexGo is to make that dream of owning a full-featured PC a reality," said Mike Wickstrand, director of product management in the market expansion group at Microsoft.

The exact finances of the program would vary, depending on a number of factors. These include the cost of the software and hardware being used, as well as the country's prevailing lending interest rate. Microsoft has already tested the idea in Brazil, but plans to expand that program in coming weeks, alongside new trials in Russia, India, China and Mexico.

Microsoft has been grappling with the challenges of emerging markets for some time. The company has offered a lower-priced operating system option, its stripped-down Windows XP Starter Edition, as part of low-cost PC programs across the globe. But total shipments of Starter have been modest, with the company having sold 100,000 copies as of last July.

Microsoft's next chapter in its battle against the iPod and ITunes begins this week, as the company releases Windows Media Player 11 to the public. Additionally, Microsoft will promote heavily a test version of the URGE music service, a project it co-developed with MTV.

Seeing that a seamless ecosystem is what has propelled the iPod to its iconic status, Microsoft has also taken a page from the Apple playbook and co-developed a portable player called the "Clix." The new device is a project between Windows-based player market leader iRiver and the Redmond company.

The deluge of media-related announcements is seen by some as an indirect admission that the company's previous strategy of allowing freedom among its partners to do as they wish in the digital media space was a failure.

Companies like Creative have struggled to succeed in a crowded market where more than a half dozen major players plus dozens of smaller outfits compete for less than a fifth of the market. The result has been a disaster not only for most of these companies financially, but for Microsoft in the minds of the consumer.

"Microsoft's track record is clear," the firm says. "It consistently misses target dates for major operating system releases. We don't expect broad availability of Windows Vista until at least 2Q07 (second quarter of 2007), which is nine to 12 months after Beta 2."

Microsoft, however, maintains that everything is on schedule, in line with its March announcement.

"We respectfully disagree with Gartner's views around timing of the final delivery of Windows Vista," a Microsoft spokesman told CNET News. "We remain on track to deliver Windows Vista Beta 2 in the second quarter and to deliver the final product to volume-license customers in November 2006 and to other businesses and consumers in January 2007."

If you look at this office, there isn't much paper in it. On my desk I have three screens, synchronized to form a single desktop. I can drag items from one screen to the next. Once you have that large display area, you'll never go back, because it has a direct impact on productivity.

The screen on the left has my list of e-mails. On the center screen is usually the specific e-mail I'm reading and responding to. And my browser is on the right-hand screen. This setup gives me the ability to glance and see what new has come in while I'm working on something, and to bring up a link that's related to an e-mail and look at it while the e-mail is still in front of me.

Regardless, the initial reaction to the UMPC, announced by Microsoft on March 9, will become clear in just a few months. The first UMPCs -- small computers with 7-inch screens that are designed to occupy a niche for consumers who want a device larger than a handheld yet smaller than a laptop -- are expected in the second quarter ending June 30 from electronics manufacturers such as Samsung, Founder and Asus. UMPCs, priced between $599 and $999, promise to run all the applications that a Microsoft Windows desktop computer does.

On the plus side, products like cell phones and the iPod didn't initially strike consumers as must haves, but became big hits. On the other side of the ledger, products like Apple Computer's Newton, a handheld computer that debuted in August 1993, was a commercial flop in large part because its handwriting recognition software didn't perform well. Microsoft, for its part, has attempted to create new categories of computers before, as with its Tablet PC, which analysts say has yet to be a big seller beyond select industries such as health care and financial services. However, even commercial flops can be deemed a success if they blaze a path to new categories of products. For instance, Apple's Newton was an early disappointment, but forged the way for handhelds like the Palm Pilot 1000, launched in March 1996.

So what will be the fate of Microsoft's UMPC, formerly codenamed "Origami"? According to Clemons, there is potential for the devices, but he won't know how much until he gets to play with one. Kendall Whitehouse, senior director of advanced technology development at Wharton, says the UMPC is a good way for Microsoft to spread its software into all forms of devices as they begin to converge. Wharton marketing professor Eric Bradlow suggests that Microsoft has a sales challenge convincing consumers they need another device that is a "tweener" between a laptop and a handheld. Jagmohan S. Raju, also a Wharton marketing professor, predicts that the UMPC will have a tough time competing due to its high price. And Robert Shelton, co-author of Making Innovation Work (Wharton School Publishing), describes the UMPC effort as another attempt by technology companies to use innovation to create new markets by finding just the right mix of size, functionality and price.

Microsoft has released a beta version of Windows Live Expo nationwide in the US. Previously in closed beta, Windows Live Expo is now accessible to all US customers and expands the traditional classified ad concept by providing social networking and community features through a free online service.

All products and services listed in Windows Live Expo are geographically identified, or 'geo-tagged', by ZIP code, not city. Windows Live Expo customers have the option to search for items from within a radius of 25 miles of them or the entire country. Live Expo listings are integrated with MSN's satellite-image-based Windows Live Local so customers can view maps and aerial imagery of neighbourhoods.

Windows Live Expo allows customers to choose to view only listings specific to their MSN Messenger Contact List or personal e-mail groups. With MSN Messenger integration, sales can be negotiated via instant messaging. When users send messages about their listings, an alert can be sent via e-mail, instant messaging or mobile phone via the MSN Alerts service. With upcoming Windows Live Expo releases, listings will be accessible via MSN Spaces blogs.

QUESTION: Is Microsoft going to develop a handheld like MP3 player to combat iPod, Apple's dominance of the last year?

BILL GATES: Yeah, Apple has done a fantastic job with the iPod. How many of you have iPods? OK, some.

Well, we are talking with partners about how we working with those partners can make even better music players. We've got some in the market today. I'd say in total they may have about 20 percent market share, which is lower than we like and so we're seeing where we could come together to make a device that's less expensive and connects in better ways, does photos and videos in better ways.

And so I don't think what's out in the market today is the final answer, but again it just shows the magic of software; Apple did a very good job on iTunes, did the user interface design right, and so that means we'll have to match all that good work and do something even better.

So between us and our partners, you can expect to see some pretty hot products coming out over the next couple of years.

Microsoft's implementation of tabbed browsing in IE 7 includes something called Tab Groups which enables user to collect their tabs into a group and open a group with one click. A native toolbar search box is also part of the new browser.

Perhaps most notably though is IE 7's new RSS (define)features.

"RSS is probably the biggest area of innovation in IE 7," Schare said. "We've done work both on the end user to expose the average user to RSS in a really great way and we've done a lot of work on the platform to enable RSS for any application to take advantage of."

Schare explained that the RSS capabilities allow users to subscribe to feeds within the browser and once subscribed that data is available to any application, whether it's an RSS reader or any other business or consumer application that might want to use the data.

It's all part of how IE 7 and eventually Vista will fully integrate RSS into the system.

For its upcoming Windows Vista operating system, the company is developing a new command-line interface, or shell--the text-based controls typically accessed by clicking Command Prompt (under Start Menu, Programs, Accessories) in Windows XP.

Code-named Monad, the new shell will enable a host of new programs known as scripts--something at which rival Unix operating systems have historically excelled. While these new commands and scripts will interest primarily administrators and power users, less-technical types may benefit from Monad scripts that could circulate on the Internet as Unix scripts do. For example, a Monad script might quickly reorganize files and directories based on their name or creation date--a task that can take a fair bit of manual labor in Windows Explorer.

Simplified command-based navigation of the operating system (including drives, startup files, and registry).

Command extensibility that allows administrators to quickly write scripts, customize commands, and author their own shell tools.

Powerful object manipulation capabilities (objects can be directly manipulated or pipelined to other tools or databases).

Direct control of system data (without the need to perform error-prone text parsing and object lookup).

Powerful aliasing and output formatting capabilities.

Support for existing scripts and command line tools.

Code-named "Fremont," a test version of the service launched a week and a half ago for Microsoft employees only, Garry Wiseman, MSN product unit manager, said. The service is expected to be released in beta publicly within the "next few weeks."

Fremont gives users the option of offering goods or services only to contacts on the MSN Messenger instant-messaging service or to groups within MSN Spaces, which is the company's blogging service. In addition, people can send notifications of items for sale through email domains, which would enable them to reach work colleagues, for example.

There's also the option of listing the classifieds broadly through MSN local search, or its regular search engine.

People who have items for sale would have a pulsating yellow star on their Spaces homepage or on the IM window that contacts see. Clicking on the star will launch a small window describing the item and details on purchasing it.

In a few short years, users can expect to make telephone calls for free, with no per-minute charges, as part of a package of services through which carriers make money on advertising or transaction fees, eBay's chief executive said on Wednesday.

Seeking to justify eBay's $4 billion purchase last week of Web-based communications phenomenon Skype Technologies, Meg Whitman countered criticism by a financial analyst during the company's quarterly conference call by agreeing with some of his points.

"The percentage of users that you can actually charge for (phone services) will actually go down, so I actually agree with that and we understood that when we looked at Skype," Whitman said in responding to the analyst's question.

"In the end, the price that anyone can provide for voice transmission on the 'Net will trend toward zero," eBay's top executive said.

Microsoft is in talks with Time Warner over the sale of AOL or a business partnership, the New York Post reported Thursday. Details of the discussions are murky, but the two companies appear to be discussing a wide array of possibilities, including combining efforts in Internet searching, instant messaging and online advertising, according to the Associated Press

While speculation centered on Microsoft buying all or pieces of AOL, the New York Times reported that Microsoft offered to sell its Internet division to Yahoo and AOL so it could focus on Web searching. The offers ultimately spurred the ongoing discussions with AOL.

Microsoft and AOL declined to comment on the reports.

An alliance between the two companies could result in an even more formidable competitor to Google and Yahoo, both of which have strong head starts over their peers in search technology and online advertising.

One of the most elaborate proposal under discussion would involve combining America Online with the MSN Internet portal and dial-up Internet business, creating the world's largest Internet company. The venture's Web search would be provided by Microsoft. A combination along those lines would be a significant blow to Google, which provides the Web search on AOL's services. This year, 11 percent of Google's revenue came from advertising it placed on AOL sites.

A combination of AOL and MSN would have 18 percent of the search market in the United States, according to Nielsen NetRatings, making it third after Google, with 46 percent, and Yahoo with 23 percent.

Google based its software on open standards, so it will work with smaller networks that are based on the same technology. Text messages can be exchanged with users of Apple Computer Inc.'s iChat, Cerulean Studios' Trillian and the open-source Gaim program.

Google also is inviting programmers to build its technology into their software.

"It means other people and developers will be able to add value to our network by being able to add this to computer games, productivity applications and anywhere else they want," said Georges Harik, director of product management at Google.

The new Google program features a basic user interface with few graphics, much like the main Google search site. It does not spawn pop-up windows or display ads like America Online's Instant Messenger.

The company also said Friday that the first beta, or test release, of Vista is slated for release by Aug. 3. That release will be targeted at developers and IT professionals, said Brad Goldberg, general manager of Windows product development.

A second, broader test release aimed at consumers will likely debut ahead of Vista's final release in the second half of next year, the company said.

Microsoft is also planning to begin testing a server version of the operating system by Aug. 3, with final shipment slated for 2007. The company said that version will not bear the Vista name. Instead, its name will "follow existing naming convention" for Windows Server. The current version is called Windows Server 2003.

John Wall, CEO of Vista Inc., said the company was "considering all of its options" for a potential case against Microsoft. Wall said the naming of Windows may violate a trademark his company has and potentially create confusion over the software and services Vista provides.

SenseCam is a badge-sized wearable camera that captures up to 2000 VGA images per day into 128Mbyte FLASH memory. In addition, sensor data such as movement, light level and temperature is recorded every second. This is similar to an aircraft Black Box accident recorder but miniaturised for the human body. It could help with memory recall, e.g. where did I leave my spectacles or keys? who did I meet last week? by doing a rewind of the days events. If a person has an accident, the events and images leading up to this will be recorded, and these could be useful to medical staff. It could also be used for automatic diary generation.

Sensors trigger a new recording. For example, each time the person walks into a new room, this light change transition is detected and the room image is captured with an ultra wide angle or fish-eye lens. Other triggers include, time, sudden movement, or a person nearby. A hand gesture can also manually capture an image. An accelerometer is used for image stabilisation to reduce blurred images caused by camera motion. This is an essential feature of any truly wearable camera.

Among the five major search sites -- Google Inc., Yahoo Inc., MSN, America Online Inc. and Ask Jeeves Inc. -- Yahoo and Ask Jeeves were cited for making their headings fainter and their disclosure statements harder to find.

"If you want to call attention to something on a page you put headline above it, [but] you don't make it smaller and more faint," said Beau Brendler, director of Consumer Reports WebWatch.

Yahoo also received the most criticism about its paid inclusion program, since it is the only engine among the top five to still use the practice, and because one way it charges included sites is based on the number of clicks on their listings.

Time Warner (TWX ) has decided that it's go-for-broke time at AOL, as the beleaguered online division launches a last-ditch gamble for survival. To generate growth even as its Internet service loses subscribers, the online company is launching one of the most radical strategic shifts in years -- throwing open its content for free in a bid to cash in on a gusher of online-ad revenues.

The refurbished aol.com is taking a different approach than the other big portals, such as Yahoo! (YHOO ) and Microsoft's (MSFT ) MSN, which hit their stride before broadband usage took off. AOL's site, to launch in July, will put streaming video and audio content front and center -- including exclusive live concerts, celebrity interviews, and film shorts.

America Online, with 28 million members, has assigned a full-time employee to handle next-of-kin requests. Before releasing account information, the company requires a copy of the death certificate and documentation proving the person requesting the e-mail information is the legal beneficiary or the estate representative, said America Online spokesman Nicholas Graham.

MSN Hotmail will provide account contents on CDs or floppy disks to relatives of deceased members after it verifies the legitimacy of the request, said Brooke Richardson, MSN lead product manager, in a statement. ``We have tried to institute a policy that is very focused on privacy, but at the same time honors the requests of bereaved family members.''

After Lance Cpl. Justin Ellsworth of Michigan was killed Nov. 13 while inspecting a bomb in Iraq, his father, John Ellsworth, wanted access to his son's Yahoo email account. But Yahoo, whose policy is to terminate email accounts upon a user's death, would not give him the material until a probate judge ordered the Sunnyvale company to do so.

Danny O'Brien of the Electronic Frontier Foundation, a San Francisco non-profit that often gets involved in digital-privacy issues, said it's difficult to find the right balance between personal privacy and a family's desire to get all of a loved one's possessions.

``We are sympathetic to the pain families go through,'' he said. ``On the other hand, there are a lot of things people want to keep private from their close relatives. You need to have some way to do that.''

"What these social networks have shown is that you can use the viral capabilities of the Internet to grow a site very quickly, but I'm not even sure that anybody has proven yet that these businesses by themselves are sustainable, stand-alone businesses," said David Card, an analyst at Jupiter Research.

Friendster was the first popular social networking site, which typically offers users ways to create personal pages, post digital pictures, and invite people to link with them on the Website.

Friendster logged 703,000 visitors to its site in April, a 15 percent drop from the year-ago month and the average visitor spent 14 minutes on the site that month, down 65 percent year over year, according to Nielsen/NetRatings. By contrast, MySpace boasted 8.2 million visitors in April, who spent an hour and 23 minutes on the site.

"As good as Apple may be, I don't believe the success of the iPod is sustainable in the long run," he said in an interview published in Thursday's Frankfurter Allgemeine Zeitung.

"You can make parallels with computers: Apple was very strong in this field before, with its Macintosh and its graphics user interface -- like the iPod today -- and then lost its position," Gates said.

snip...

"If you were to ask me which mobile device will take top place for listening to music, I'd bet on the mobile phone for sure," Gates told the newspaper.

Yahoo gave no indication how long it would keep its initial pricing of its Music Unlimited service, which is 6.99 dollars a month or 4.99 dollars for those who buy a one-year subscription.

Additionally, Yahoo will be offering consumers permanent downloads at 79 to 99 cents a song, cutting into the turf of Apple's iTunes service, but also others including RealNetworks and Napster.

With Metro, Microsoft basically wanted to create a file format that would handle two specific tasks. First, the software giant wanted a way to save files from within any Windows program that could then be opened, viewed and shared without needing the specific program that created it. Second, Microsoft wanted to use the same method for sending data to a printer that it uses for displaying data on screen. So Metro uses the same method for describing and understanding graphics and text that Longhorn's Avalon graphics engine uses.

But that is where Metro's ambitions end, Brown said, pointing out that PDF is useful for entirely different kinds of documents, such as multimedia files or electronic forms.

Adobe's Pam Deziel, director of product marketing for the company's Acrobat product line, agreed that PDF offered capabilities far beyond Metro's, describing the Microsoft format as a way to update the current Windows print architecture, which has become "a little long in the tooth."

Even Google, the Web's self-proclaimed "Do no evil" company, is experimenting with a technology called AutoLink that inserts button-shape links on other people's Web sites that lead back to Google or to Google partners like Amazon.com. Google says it is still only experimenting with AutoLink but, ominously, adds that it is exploring ways to increase the technology's scope. If that happens, predicts New York intellectual property lawyer Jeffrey Neuburger, "There will be some litigation."

Google's Labs and API were held up as exemplars of a modern internet business, while Yahoo was seen as floundering in a sea of accountants, pop-up ads, and Britney Spears. But Yahoo has learned its lesson. Research.yahoo.com, launched last month, is the same idea as labs.google.com - a showcase for new and interesting projects - but it's better. Unlike Google, Yahoo publishes its papers, names its researchers and says what it is up to. One-nil to Yahoo.