VMware today announced a beta release of its upcoming Workstation 3.0 desktop virtualization software. VMware Workstation allows multiple operating systems to run as virtual computers within a single Windows NT or Linux environment. Version 3.0 will add support for Windows XP, USB devices, DVD-ROM, CD-RW and DVD-RW drives. NAT is now built-in and up to nine virtual Ethernet switches are supported.

"Workstation 3.0 is our most powerful and comprehensive desktop software release ever," said VMware CEO Diane Greene in today's press release. "It's faster, easier to use and supports a wide range of peripheral devices. The result of 2 1/2 years of experience with hundreds of thousands of users, Workstation 3.0 is a compelling, must-have product for power developers and other technical professionals."

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Hoping to encourage a transition to Office XP, as well as Windows XP when it arrives this October, Microsoft UK is offering a free evaluation pack to businesses looking to preview the software. Visio 2002 and Project 2000 will also be made available to those who request the additional tools. After slow adoption of Windows 2000 and more recently Office XP, the software giant hopes a free trial will give corporations a chance to see value in the upgrade.

While Microsoft states the pack contains a 30-day trial CD with Office XP, the business copy of Windows XP will function for 180 days after installation. It is not clear, however, whether Microsoft will send Release Candidate 2 -- the last prerelease milestone -- or RTM copies of Windows XP.

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Sending shockwaves throughout the computing industry, Hewlett-Packard and Compaq Computer announced late Monday plans to merge in a deal valued at almost $25 billion. The resulting company, 64% owned by HP and 36% owned by Compaq, will have a combined revenue stream of $87 billion, just shy of top computer company IBM. The new HP will be split into four operating units and become the largest manufacturer of servers, handhelds, printers, and imaging devices.

The deal is expected to close in the first half of next year, but could be delayed by possible antitrust queries.

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While industry giants battle over a secure audio platform, a team of developers is taking a radically different approach -- establishing a completely open source music format free of any licensing restrictions. While still in its development phase, Ogg Vorbis is already giving new proprietary formats such as mp3PRO and Windows Media a run for their money. BetaNews recently spoke with Vorbis Product Manager, Jack Moffitt, to discuss the project and learn more about the recent release of RC2 on the road to 1.0.

BetaNews: RC1 brought some major changes to the [Ogg Vorbis] format and boasted some big numbers to compete with mp3PRO. What is new in RC2 and what do you think the impact of those changes will be?

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Putting to rest the final effort from Be, Inc. to establish its BeIA embedded platform, Sony announced yesterday that it will cease offering the eVilla Web appliance. The news comes less than two months after the $499 BeIA-based machine made its first appearance. A full refund will be offered to eVilla users, including all Internet service fees.

Although Sony claims the decision has nothing to do with the purchase of Be's assets by Palm earlier this month, executives blame "stability and usability" problems -- both of which revolve around the BeIA operating system that powers the device. Palm made clear at the time that it had no plans to further develop or support BeIA, placing Sony in a tough position with customers.

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Despite increased pressure from the European Commission over antitrust concerns, Microsoft confirmed today that the Commission will not seek to block the launch of Windows XP. The Commission also merged two cases against Microsoft, one focusing on Windows Media Player and another covering Windows 2000 in the server market. There are no plans, however, to involve Windows XP -- set to debut October 25 -- in the investigation.

"Microsoft has long believed that the merger of these two cases is a prerequisite to a resolution of the company's issues in Brussels and therefore welcomes this merger as a constructive step in the ongoing dialogue on these issues," the software giant said in a statement.

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In what is to be the company's biggest software launch to date, Microsoft today released to manufacturing the final version of Windows XP. The announcement was made this morning in Redmond, while representatives from six computer manufacturers stood by to receive copies of the golden master complete with gold briefcases. Helicopters then lifted off with the PC makers in tow, set to begin building computers with the new operating system.

The final build, numbered 2600, was completed at 3 a.m. Saturday, August 18, after three minor bugs were discovered in 2542, the final interim release. 1,000 CDs were distributed to internal testers for a final run, and golden master disks were created Sunday. Final testing of the media and build itself completed Thursday, whereupon testers signed off on XP's release to manufacturing.

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In a stock deal valued at $11 million, Be, Inc. today announced plans to sell its intellectual property and technology assets to handheld computer maker Palm, Inc. Be, creator of the fledgling BeIA and BeOS multimedia operating systems, confirmed intentions to sell the company in April after news that it was almost out of cash. Palm will make use of Be's embedded technology to better compete in the multimedia space with rivals such as Microsoft.

"This move will help us expand the Palm OS platform into broader markets," Palm CEO Carl Yankowski said in a prepared statement.

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Taking aim at Netscape's grasp of the Linux market, Opera Software has released an alpha of their Opera 5.05 browser with an important feature -- support for Netscape plug-ins including Java. The Linux Technology Preview serves as an update to Opera 5.0, adding the ability to run plug-ins designed for Netscape, such as Flash, Acrobat Reader and perhaps most importantly, Sun Java 2 Runtime Environment.

Not shy about the announcement, Opera touts a "faster, better and less bloated Internet experience [for users] while enjoying their favorite plug-ins for video, audio, document viewing, animation and much more"

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Further establishing its dominance as the MP3 hardware king, Philips has announced a new addition to the popular eXpanium lineup. The eXp401 is a smaller incarnation of the portable MP3-CD player, utilizing 8cm disks -- 40% smaller than standard CDs -- that hold 185MB of compressed audio. Philips is looking for 50 beta testers to try out the portable, which is expected to debut late this year.

The eXp401 supports AAC and MP3 audio, and sports a 100-second electronic skip protection. Philips claims 3-hour playback on one AA battery, matching the length of music that can be stored on the 8cm CD. All disk formats are supported, including CDR, CDRW and UDF. A large LCD additionally provides quick navigation through artists and albums.

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While discussions continue as to the fate of lucrative desktop real estate, Stardock has another solution for OEMs looking to appease Microsoft and partners alike -- sell the taskbar and My Computer instead.

It is no surprise that the desktop has become a strong point of contention in the upcoming Windows XP. Companies have long viewed exposure in Windows as the most valuable marketing tool, forcibly proliferating their wares on millions of new computers each year. But Microsoft now wants the space left empty, and OEMs are stuck contemplating whether to support a simplified user experience or make a quick buck.

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Sierra and Stainless Steel Studios are looking for beta testers to uncover bugs in the upcoming Empire Earth, a real-time strategy game spanning human history. The beta will primarily focus on preparing Sierra's severs for the game's massive multiplayer component. Registration is open to applicants from all over the world, and end on August 13. Those chosen will be notified via e-mail and required to download the approximately 450 MB beta.

According to the preview beta site, "All participants will enjoy entry to the exclusive Empire Earth Beta forum where they can share messages with members of the development team."

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Microsoft took one step closer to the release of Windows XP this evening, issuing to testers interim build 2535. This latest build comes on the heels of Release Candidate 2, the last milestone on the road to gold code. The software giant is expected to release Windows XP to manufacturing within the next three weeks, and the new OS could make a public debut on new PCs in early September with a full launch arriving October 25.

Very few changes have appeared in 2535, a sign that RTM may occur as soon as next week. Partners are quickly finishing drivers and compatibility tests on the OS, planning for a drop date of August 28 at the latest. But it is clear Microsoft wants to get XP out the door as quickly as possible.

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The popularity of wireless networking has ushered in widespread industry adoption of the Wi-Fi, or 802.11b, communications standard. Just this week, computing giants Intel and Microsoft gave the protocol their backing, both joining the Wireless Ethernet Compatibility Alliance board of directors. Microsoft's upcoming Windows XP will even nativley support the standard. But scientists have now put into question the integrity of information broadcast over Wi-Fi networks, citing weak encrypton.

It is no surprise that methods have been uncovered to give hackers the ability to bypass Wi-Fi's built-in security system, dubbed Wired Equivalent Privacy (WEP). Last March, a group of researchers at the University of Maryland documented severe weaknesses in WEP. However, wireless supporters downplayed the potential for criminal mischief due to the complexity involved. Even still, it was simply a matter of time before more practical means of intrusion were discovered.

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In an e-mail to beta testers, Microsoft today announced the availability of what is expected to be the final build for the Internet Explorer 6 release. Barring any last minute issues, build 2530.1 will be deemed golden next week.

"We would like to express our sincere appreciation for your participation in the Beta program," IE6 coordinators boasted, "In large part thanks to your feedback and input, Internet Explorer 6 will be the best browser in the market."

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