AOL Beta Testers Land on 'Tahiti'

America Online has conquered the shores of Blue Hawaii, and is now setting its sights on Tahiti.

Blue Hawaii, otherwise known as AOL 9, is scheduled to be updated with a series of enhancements and add-ons. Collectively, this update and all of its bits are code-named "Tahiti."

Tahiti has undergone three separate tests thus far, culminating in build 4156.130. According to sources familiar with the project, this most recent build offers up animated smileys, PDF file recognition, a print icon on titlebars, the ability to arrange icons on the toolbar carousel, and the ability to import Internet Explorer favorites.

Later builds are set to include live video over instant messaging, expanded SuperBuddy icons and tabbed IMs like those seen in third party messaging clients.

"Tahiti is a code name for an updated version of our software," AOL spokesperson Anne Bentley told BetaNews. "We're testing some new features and other enhancements to the AOL service as part of our continuous efforts to provide our members with the best possible online experience."

Bentley added that since the beta test is in its early stages, no specific information on features and other elements would be discussed in any depth at this time.

Firing back at fierce competition from AOL, Microsoft has begun work on an update to its MSN Internet service, after courting testers for MSN 9 -- now known MSN Premium -- in early August.

The next iteration of MSN drops version numbers, and will be available in Premium and Plus offerings, with the MSN Plus service pegged as a low-cost solution.

MSN Premium features a My MSN custom home page, refined dashboard, as well as productivity applications including Money Plus, Encarta Plus and Photo Plus. On top of this lineup, Microsoft recently announced plans for a free, subscriber-only premium video feed. The video content will be subsidized with advertising revenues.

"Competition remains fierce between AOL and Microsoft. The upside is that both companies frequently refine the features of their online access clients," Joe Wilcox, senior analyst for Jupiter Research, told BetaNews.

"Microsoft has released one new version and one major update in the last year," noted Wilcox. "A new MSN version is testing and expected to ship within a few months. When you compare that to Microsoft's lackluster IE development, the difference is competition."