UPDATED AOL, under the guise of Netscape Communications, has filed suit against Microsoft for "anticompetitive conduct against Netscape" during the height of the browser war that left the company out in cold and Microsoft with a 97 percent market share. The lawsuit cites seven counts since 1995 in which Microsoft allegedly committed illegal acts to promote Internet Explorer and harm Netscape Navigator. Netscape seeks retribution and to "restore competition lost in the operating system market and in the Web browser market because of Microsoft's illegal conduct."

"There is no question that Microsoft's conduct violated the law and harmed competition and consumers. Netscape's lawsuit seeks not only an award of damages, but for the Court to provide injunctive relief that will help restore competition on the computer desktop," said America Online General Counsel Randall J. Boe.

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Sources have revealed that AOL Time Warner is in negotiations to purchase Red Hat, Inc., maker of the most popular Linux distribution and arguably the only formidable rival to Microsoft's operating system empire. As first reported by the Washington Post, AOL has long been interested in controlling alternatives to Microsoft software, previously buying up Netscape, Winamp and ICQ.

However, ownership of a true Windows competitor -- even one with little market share -- has potentially far greater ramifications for Redmond and marks the first major step by AOL to dislodge the ubiquitous Microsoft desktop.

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McAfee is preparing to beta test version 7.5 of its Desktop Firewall, complete with Windows XP compatibility. McAfee is specifically looking for businesses to trial the new software as they would in a live environment.

"While we are always interested in feedback from anyone who wishes to participate in our beta cycles, beta testing of the Desktop Firewall v7.5 Beta will be focused towards our small-enterprise business customers. This is due to the new integration with ePolicy Orchestrator v2.5, which receives the best testing by our business customers," McAfee beta coordinator Tony Rasmussen told BetaNews.

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Michael Robertson, founder of MP3.com and current CEO of Lindows.com, has called on newsletter members to help his new startup in its legal battle with Microsoft. The software giant has filed suit against Robertson and company with claims that LindowsOS is confusingly similar to its own 'Windows' trademark. LindowsOS, a WINE-enhanced version of Linux, touts the ability to smoothly run many Windows applications - although a preview release originally slated for December has failed to surface.

"We don't think people will confuse our products because they're very different and that the true reason Microsoft is attacking us is because of what our product does and not because what it is named," Robertson said in response to notice of the lawsuit.

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Symantec Corp. is seeking beta testers to scrutinize its new XP-compatible update to pcAnywhere, the company's popular PC remote control software. Version 10.5.1 adds full support for Microsoft's new Fast User Switching, a feature notably missing from the current release. pcAnywhere will be able to remotely access a Windows XP machine even through a fast user switch, an ability Symantec says "that not even Microsoft's Remote Desktop or Remote Assistance can claim."

"We had to jump through some hoops to make it happen, so that's why we really want people to bang on the beta to help us find any remaining problems," Symantec's Alan Feldman told BetaNews.

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Netherlands-based FastTrack has voluntarily chosen to block new users from signing up to KaZaA, it's popular file swapping service, until the end of the month. The company is awaiting a decision in its court battle with Buma/Stemra, a Dutch copyright organization which FastTrack had been in negotiations with over licensing.

A note on the KaZaA download site simply reads, "Download of the KaZaA Media Desktop software is temporarily and voluntarily suspended pending Dutch court decision on January 31. We apologise for the inconvenience."

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Beta testers have begun to receive word of the impending first beta release of DirectX 9.0, the multimedia foundation behind Windows. DirectX 9 first made headlines at Meltdown 2001 last summer and is expected to feature advanced pixel shading and gamma correction.

"We know everyone is excited about getting started and we appreciate your patience. We will send email to you at the time of our first release with instructions on how to download the beta and access the newsgroup," Microsoft beta coordinators wrote in an e-mail to testers.

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With the launch of Visual Studio .NET less than a month away, Microsoft has decided to give MSDN subscribers early access to the new development suite that is meant to serve as the building blocks for next-generation XML Web services. Visual Studio .NET will formally launch in three editions beginning February 13: Enterprise Architect, Enterprise Developer, and Professional. MSDN subscriptions start at $1,199 USD and offer developers access to the latest tools.

After over a year in beta Microsoft's .NET Framework SDK, which provides the guidelines for deploying .NET applications, is also now complete. The .NET Framework SDK includes "everything you need to write, build, test, and deploy .NET Framework applications—documentation, samples, and command-line tools and compilers." The 131 MB package is publicly available for download from Microsoft.

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This week at CES, Samsung announced a new category of handhelds it calls the "Wireless Hand PC" and unveiled its NEXiO S150 - the first of such devices. Unconcerned with the continued PDA sales slump, Samsung plans to market NEXiO to enterprise customers who need to mobilize their workforce.

Embedded wireless technology and landscape orientation give NEXiO the ability to view full Web pages while keeping size to a minimum. "We think we're much more than a PDA," Samsung's David Nichols told BetaNews.

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TiVo has announced plans to release a second generation digital video recorder, complete with games and the ability to download and stream music through a partnership with RealNetworks. The TiVo Series2 box will feature a 60GB hard drive and two USB ports for connecting cameras and audio players.

A specialized version of RealOne will be included to allow subscribers of Real's premium services to download and stream audio and video using TiVo.

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Creative Technology on Tuesday released the first external sound card in the history of the company. The Sound Blaster Extigy, an external version of the Audigy, attaches to a notebook or desktop via USB port. Extigy will be marketed toward mobile users and gamers wishing to experience multi-channel surround sound. With its myriad of inputs and outputs, the Extigy can even function independent of a computer, providing 5.1 Dolby Digital decoding for DVD players or gaming consoles.

"We are excited to meet the demands of PC users who have been clamoring for a convenient, easy-to-use external Sound Blaster solution with the digital audio fidelity of the Sound Blaster Audigy. Notebook users can also enjoy great multi-channel MP3 and digital music, DVD movies and games on their notebooks," said Creative CEO Sim Wong Hoo in Tuesday's announcement.

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With the now defunct Be, Inc. closing its doors forever, the three remaining board members announced plans to liquidate all remaining office equipment in a public auction to be held January 16. While the sale of BeIA and BeOS to Palm was a disappointing end to a long journey, Be enthusiasts now have the opportunity to own a piece of the history they helped create.

Up on the auction block will be numerous Be Web tablets and prototypes, and even three BeIA-based e-Villa computers from Sony that never reached the market. But perhaps most intriguing is the chance to own one of twenty BeBoxes, seemingly ancient PowerPC computers that were the foundation for BeOS.

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Philips Audio today unveiled a new addition to its line of uniquely designed digital audio players, the Streamium MC-i 200. The new micro hi-fi system builds upon the larger FW-i1000's Internet connectivity to add full support for streaming audio. The MC-i 200 connects to current Internet radio stations, as well as premium subscription services being rolled out by companies such as MusicNet and Pressplay.

And to kick off the new year, Philips will be selecting 100 beta testers to evaluate the Streamium before it launches later this year.

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Microsoft's eHome Division is slowly making progress in its quest to merge the PC with home electronics. In his keynote address at CES Monday evening, Bill Gates previewed two new technologies designed to enable the use of a Windows XP PC when not parked in front of it.

A virtual media center code-named "Freestyle" will allow a user to access music, video and photos from across the room via remote control and extra-large user interface. Additionally, a set of technologies dubbed "Mira" will serve as the foundation for detachable displays set to debut later this year.

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Embedded developers have reason to rejoice, as Microsoft today released the final version of Windows CE .NET after nine months of beta testing. Microsoft chairman and chief software architect Bill Gates made the official announcement in his keynote address at CES Monday, showcasing devices using the new operating system.

“Windows CE .NET delivers the next-generation embedded platform, and the programs and services announced today will enable developers to bring smart Windows Powered devices to market even more quickly,” Gates said.

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