In an effort to build up its Widget repertoire before Mac OS X 10.4 makes its official debut next year, Apple is holding a contest to attract would-be designers. Widgets are small applications such as clocks or calculators based on standard JavaScript and HTML, which will run within Apple's Dashboard, a new feature of its forthcoming operating system upgrade, code-named Tiger. The Dashboard appears as a transparent layer over the desktop at the click of a key.

Only members of Apple's Developer Connection network with access to Tiger beta builds are eligible to join the contest. Widgets will be judged on technical excellence, innovation and ease of use, according to the official rules. Contest submissions will be accepted until January 5, with the winner receiving a 40GB iPod.

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EXCLUSIVE AOL Music is ramping up its efforts to release a new Media Player independent of the AOL client software, with a long-term goal of building its own music store.

While a beta release is currently only available to AOL members, sources tell BetaNews the company plans to bring AOL Media Player (AMP) outside its "walled garden" to expose new users to AOL content and services.

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PalmSource announced it has acquired Chinese embedded software company China MobileSoft (CMS), broadening its reach to more mobile hardware platforms. CMS applications currently ship with over 30 phones and the company is also working on a version of Linux designed for mobile devices.

PalmSource says it will extend this effort to develop a version of Palm OS that runs atop Linux. Although it will continue to offer Palm OS versions 5 and 6 to licensees, PalmSource plans to bring its user interface, Palm OS and BeOS software frameworks, as well as numerous applications to Linux.

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After canceling the event in 2004, Microsoft is planning to move forward with its Professional Developers Conference in 2005, according to Microsoft Watch. The conference will take place the week of September 11 in Los Angeles, California. While the PDC is traditionally developer-oriented with a multitude of learning sessions, the 2003 event sparked huge interest with the first official unveiling of Longhorn. And with Longhorn Beta 1 slated for next year, PDC 2005 will also likely be one to watch.

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IBM has officially confirmed it will sell its PC business to Chinese computer maker Lenovo for a total of $1.75 billion. Rumors about a potential deal swirled on Monday following a report stating the two companies were in talks.

Lenovo will pay IBM $650 million in cash, another $600 million in common stock, and assume $500 million in debt from Big Blue. IBM will become Lenovo's second largest shareholder with a stake of 18.9 percent in the company, and over 10,000 IBM employees will migrate to Lenovo.

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As expected, America Online has cut 750 jobs in Ohio, California, New York and Virginia, the company acknowledged Tuesday. Reports of impending layoffs surfaced last month following parent Time Warner's earnings statement. More then half of the cuts, which total 4 percent of the AOL workforce, were made at AOL's Northern Virginia headquarters where it employs over 5,000. AOL's attempt to trim its losses amid falling subscriber levels has not come without casualties; Winamp was recently all but abandoned.

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With a final release expected early next year, Microsoft has released the first release candidate for Windows Server 2003 Service Pack 1. The service pack fortifies the Microsoft's flagship Windows Server line with a bevy of new security patches, bug fixes and provides the underpinnings for the company's upcoming 64-bit Windows Server product line.

RC1 will be the first public release of Windows Server 2003 SP1, as Microsoft looks to solicit feedback from customers before a final launch. The update includes additions similar to those found in Windows XP SP2, such as the Security Configuration Wizard. Microsoft has also learned from its past mistakes by offering customers a "Post-setup Security Update Wizard," which patches any outstanding security holes before a server boots up for the first time.

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The Mozilla Foundation has released version 1.0 of its Thunderbird open source e-mail client, calling it the "perfect companion" to last month's Firefox debut. Thunderbird development has focused on features to stop spam and viruses that plague inboxes, as well as integrating useful tools such as an RSS news reader.

Thunderbird hits spam head on with adaptive filters built to learn from junk mail that manages to sneak through. For added security, the client also supports message encryption, digital signing, certificates, and security devices.

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Two weeks after inviting Windows Server 2003 Service Pack 1 testers, Microsoft has opened the door to anyone wishing to beta test the next Windows Server release, code-named R2. A nomination form for the beta program has been posted to Beta Place along with a few details of R2, which Microsoft says is due in October 2005.

Microsoft's goal with R2 is to fill the gap between Windows Server 2003 SP1 and Longhorn Server, which is not expected until 2007.

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Yahoo! has further expanded its brand's reach, adding its name to low-cost DVD players and home theater systems, which are now for sale online. The move into consumer electronics is a new venture for Yahoo! despite previous forays into computer-specific products such as keyboards. To bring Yahoo! into the living room, the online giant partnered with manufacturer Diamond Electronics. "The Yahoo! online Life Engine experience is extending to hip, cutting edge electronics gear," the Yahoo! Licensed Products Web site reads.

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Microsoft has tapped Jeopardy! king Ken Jennings, who recently finished his 75-game run on the show, to become the spokesman for its Encarta product line. Jennings will embark on a nationwide media tour called "Quiz the Whiz" that challenges news desks to stump the human encyclopedia with questions from Microsoft's Encarta Reference Library Premium 2005.

Jennings broke the game show record books this year and attracted a cult following by answering 2,700 Jeopardy! questions and raking in over $2.5 million in winnings. Before he takes off to Europe with his family next summer, Jennings hopes to pass on some of his passion for learning.

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Following what the company says is unexpected demand for its screensaver that targets spam servers with bandwidth-clogging requests, Lycos Europe has pulled "Make love not spam" offline.

The software utilizes processing power from an idle PC to make repeated connections to known spam URLs in an attempt to raise bandwidth fees and make the practice too expensive for spammers. However, questions were raised after two targeted servers were apparently flooded offline by the screensaver despite claims the software has built-in measures to prevent such an event.

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IBM has put its consumer PC unit up on the auction block, refocusing its efforts on the more profitable corporate server and computer service markets, according to a report in the The New York Times. The sale would likely include all of Big Blue's desktop workstations and ThinkPad portables, for an estimated price range of $1 billion to $2 billion. Sources tell the Times that Chinese computer maker Lenovo -- formerly Legend -- is the current top bidder for the business unit that represents 12 percent of IBM's $92 billion annual revenue.

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Apple has released a security update for Mac OS X that corrects 16 vulnerabilities contained in programs found within the operating system. Five of the fixes pertain specifically to the Apache Web server, while two involve Apple's Safari Web browser. Microsoft this week issued a critical patch of its own for the much-reported IFRAME vulnerability in Internet Explorer. Mac OS X users can download the 2004-12-02 security update via Software Update.

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Google has swapped out its main Groups service with a beta of Google Groups 2, which the search giant has been testing since last May. Users who click the "Groups" link on the Google homepage will be redirected to the beta offering that promises enhanced features and focuses on community building.

In fashion with MSN's Communities and Yahoo!'s Groups, Google Groups 2 allows users to design their own group Web sites, mailing lists and newsletters. Users can designate whether a group is public or restricted, which limits who can read or respond to conversations.

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