UPDATED Originally positioned as a small refresh update to AOL 8.0 Plus, the client software code-named Blue Hawaii and known internally as Bunker Hill has been designated a beta version of AOL 9.0.

Blue Hawaii features significant changes over its predecessor, most notably sporting a new interface technology code-named "Prescott Skins." Prescott enables users to select different themes, or skins, for the AOL client. AOL currently has three Prescott skins available; each called a "room."

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Microsoft is asking users of Office 2003 Beta 2 to help beta test the latest version of ActiveDocs from Keylogix. ActiveDocs is automation software that runs within Microsoft Word and creates customized documents based on answers given to specified questions stored in a template.

ActiveDocs version 4.0 adds support for the new WordML XML document format and improved Smart Tags functionality. Architectural changes have been made to ActiveDocs enabling the application to better interoperate with InfoPath and Windows SharePoint Services.

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The first beta release of Visio 2003 has been completed, Microsoft announced at the 57th Annual Quality Congress and Exposition. Visio 2003, Microsoft's drawing and diagramming solution, is slated to ship late this summer in Standard and Professional Editions.

The Visio 2003 beta will initially be available only to Redmond partners and testers, but Microsoft has posted a public signup page for customers interested in receiving Beta 2. Although Visio 2003 is part of Microsoft's Office System, the beta was not ready in time to ship alongside Office 2003 Beta 2 in March.

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Roxio announced it has taken a majority ownership in Pressplay, the music subscription service started as a joint venture of Universal Music Group and Sony Music Entertainment. Pressplay will serve as the base for a new paid version of Napster, which Roxio acquired last November, slated to debut later this year.

"With our acquisition of Pressplay, we have the most complete and scaleable legal technology infrastructure to use as a platform to re-launch Napster," said Chris Gorog, Chairman and CEO of Roxio.

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Citing the need to ensure compliance across its UNIX-based products, Microsoft licensed from SCO a technology patent and source code to the UNIX operating system.

The revelation has sparked heated discussion and speculation among open source advocates questioning the intentions of Redmond. But Microsoft representatives have remained mum, letting company lawyers do the talking.

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Expanding the home entertainment functionality of its Xbox gaming system, Microsoft demonstrated at E3 an upcoming add-on that enables viewing of music and photos using the Xbox console.

The feature, dubbed "Music Mixer," connects to computers over a network and creates a library of digital media. The primary focus of Music Mixer will be karaoke, with its "digital lyric-stripping technology" and bundled microphone.

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As Microsoft begins to beta test version 5 of Windows Messenger, which is aimed at business communication, the company is also prepping a major upgrade to MSN Messenger sporting more consumer oriented features.

MSN Messenger 6 brings an overhauled user interface that matches the new MSN browser. New gaming functionality enables users to play Zone.com games such as checkers and double solitaire from within the Messenger client (screenshot).

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Furthering its efforts to boost subscriber levels, TiVo will begin licensing an introductory version of its service to consumer electronics manufacturers. The TiVo Basic service is designed to be packaged with products such as DVD players and provide limited DVR functionality through TiVo's interface.

Users will be able to pause live TV, record from the program guide and browse through three days of guide data using the Basic service. But in order to access features such as Season Pass, WishList and searching for programs, users must subscribe to the full TiVo offering, which runs $12.95 per month or $299 for a lifetime subscription.

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Panasonic and Microsoft announced plans to expand the HighMAT specifications to support writable DVD formats and ship the technology in their respective lines of hardware and software.

HighMAT, or High-performance Media Access Technology, defines a standard method for organizing photos, videos and music, in order to allow consumers to better access digital media when away from the PC. Currently, devices such as car stereos and DVD players must search an entire disc to find digital media, causing significant delays.

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In his WinHEC 2003 keynote Wednesday, Will Poole, senior vice president of the Windows Platforms Group, provided the first official insight into Microsoft's plans for delivering Longhorn.

As the first major Windows client release to follow Windows XP, Longhorn will serve as a substantial upgrade, bridging the gap between hardware and software.

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A pre-beta version of Microsoft's Virtual Server product, which the company purchased from Connectix in February, is now available for public download from BetaPlace. The preview release, build 1.0.218, is the same that leaked out of Redmond late last month.

Microsoft Virtual Server enables businesses with large server clusters to reduce the amount of physical machines by running multiple virtual servers on each. Microsoft plans to also position Virtual Server as a migration path for companies still running Windows NT4 servers, which can be consolidated onto a single newer machine running Windows Server 2003.

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Microsoft has released to testers a beta version of Windows Messenger 5, the client application for the company's next generation instant messaging platform. Microsoft recruited testers for the beta program last month, announcing plans to keep the beta open until the end of June, 2003.

"Welcome to the beta release of Windows Messenger 5.0 Beta," Microsoft beta coordinators wrote in an e-mail to selected testers. "We are excited to be offering this Beta widely, in order to get feedback on what you like and don't like about our product."

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Bill Gates kicked off WinHEC 2003 Tuesday, showcasing the future of the Windows PC with a prototype code-named "Athens." The concept PC, co-developed by Microsoft and HP, serves as a central console for communication, complete with integrated camera and wireless handset.

Athens also improves on PC design, with a high resolution widescreen display and silent operation (screenshot). Microsoft hopes to create a true communications appliance, merging voice, video and text messaging.

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Surpassing even its own expectations, Apple announced that over one million songs have been sold via the iTunes Music Store since its launch one week ago. More than half the songs were purchased as part of complete albums, a sign Apple says proves that selling individual tracks online will not destroy album sales.

Apple CEO Steve Jobs boasted about the instant success, saying Apple had "broken every record and become the largest online music company in the world."

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Sony Online Entertainment has opened to the public a beta version of EverQuest, the company's wildly popular multiplayer fantasy roleplaying game played online, for Mac OS X. To bring the three year old game to Mac, Sony enlisted Westlake Interactive, which has ported titles such as The Sims and Medal of Honor.

"EverQuest has entered the Public Beta phase and is in final testing before being released," read a notice on Westlake's Web site from Lead Programmer Glenda Adams. "Mac gamers who would like to apply to be part of the public beta can sign up at the URL listed below. Feedback on the Beta so far has been great, and we're really excited about getting this game out the door!"

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