Palm on Wednesday introduced its two newest handhelds, bringing color to its low-end models as well as built-in Wi-Fi for its higher end models. However, noticeably different is the absence of brand names - the company has decided to do away with the Tungsten and Zire designations.

The Palm Z22, which would have formerly been part of the Zire family, is the first sub-$100 handheld from Palm with a color screen. The company said that the handheld has been built with the first-time user in mind in order to reach those reluctant to buy a PDA over fears of difficulty of use.

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Microsoft plans to issue its second refresh to Windows XP Media Center Edition on Friday, code-named "Emerald." The update, according to a report in Microsoft Watch Wednesday, will be supported by new partnerships from AOL and MTV among others.

New features expected in "Rollup 2" release are easier access to online movies and multimedia, as well as souped up e-mail and shopping capabilities. Microsoft is apparently changing the focus of Media Center, the site reports, to on-demand content rather than the user's personal content.

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Google detailed late Tuesday plans to become a more charitable organization, including the founding of Google.org that would serve as the search giant's philanthropic arm.

The new entity would include the Google Foundation, some of Google's own projects, in addition to becoming the starting point for partnerships and contributions for projects of other non-profit and for-profit organizations.

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UPDATED Microsoft and Yahoo announced on Wednesday a blockbuster interoperability deal that will reshape the landscape of the fragmented instant messaging market. The companies will connect their IM networks so users on each can communicate with one another using text and voice chat free of charge.

Starting in the second quarter of 2006, customers of both services will be able to see their friends' online presence, share emoticons, and add new contacts from either Yahoo! Messenger or MSN Messenger to their buddy list.

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IBM announced plans on Wednesday to make a donation of intellectual property that it hopes would help companies adopt and share the best practices for software development. The donation, which consists of some 300,000 lines of code, is a portion of the IBM Rational Unified Process (RUP).

"We think we will change the software process industry," IBM's manager of methods Per Kroll told BetaNews in an interview. "We think this would solve a lot of problems."

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Apple on Tuesday reported yet another record quarter for the company, finishing the best year in its history. The devil is in the details, however, and iPod sales were relatively flat compared with last quarter only increasing five percent. Macintosh sales recorded a similar five percent increase.

Even with flat sales, the company is becoming more profitable, posting revenue of $3.68 billion on a profit of $430 million. "We're extremely proud to have just completed our best year in company history," Apple CFO Peter Oppenheimer said in a conference call for financial analysts Tuesday evening.

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As promised, Microsoft on Tuesday issued nine separate security patches, fixing vulnerabilities in DirectX, Exchange, Internet Explorer, and Windows itself. Three of the fixes were deemed "critical," four "important," and two "moderate."

All of the critical patches involved some type of remote code execution vulnerability. The Internet Explorer patch fixes a flaw found by eEye Digital Security and the French Security Incident Response Team back in July revolving around the COM object within IE.

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Verizon Wireless unveiled its first consumer phone that doubles as a digital music player on Tuesday. Manufactured by Samsung, the SCH-a950 will store music on a TransFlash memory card that the user will need to purchase separately.

The Samsung SCH-a950 includes a play button on the exterior of the unit that will allow for one button access to a user's music collection. Other buttons on the face of the phone will stop and skip songs in the library, while a jog dial similar to the scroll wheel on iPods will allow for even faster navigation.

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Nokia and Ericsson both committed on Tuesday to help the spread of GSM in the 450 megahertz band, which would offer operators of the worldwide wireless technology a way to cover rural areas in a less expensive manner.

The band was once used for analog cell phones, a service that has since been dropped by most carriers. Using the band for GSM service would mean providers would be able to build less base stations than with current technology, which uses the 900, 1800 and 1900 MHz bands.

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Microsoft and RealNetworks have announced a wide-ranging settlement of Real's long-standing antitrust suit, which is composed of three separate agreements valued at $761 million and resolves all disputes between the companies.

The music and games portion of the deal includes $301 million in cash and the marketing of Real's products and services. Real's Rhapsody music service will be showcased across Microsoft's Web properties, and the company's games offered through MSN Games and Xbox Live Arcade for Xbox 360.

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EchoStar, parent company of the DISH Network, announced on Tuesday it would begin offering handheld media devices that enable satellite TV subscribers to take content recorded from the DISH service with them in a portable manner.

The PocketDISH player will be available in three models: two that have recording capabilities and one that is playback-only. The two recorders will have HD-capable LCD screens in sizes of 4 and 7 inches with 30GB and 40GB capacities, respectively. The player will come in a size of 2.2 inches and a capacity of 20GB.

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Nero will soon release a new version of its digital media software, Nero 7. The suite now includes 18 applications including Nero Home, a new Media Center-like program that allows users to navigate their digital media on a TV screen with a remote control. Version 7 also adds support for Blu-ray and HD-DVD.

The company has also added the capability for a custom install, meaning users can select which Nero 7 applications are loaded onto their machines. Other new features include Nero Scout, a new media database application; redesigned backup and burning applications; and support for 5.1 and 7.1 audio recording. Nero 7 will go on sale October 26 for $99.99 USD. A Web-only download is priced at $79.99 USD.

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Microsoft's MSN division is looking for testers to try out its new adCenter product in the United States through a recently launched pilot program. Yusuf Mehdi, senior vice president of MSN, asked employees last week to invite businesses who might be interested in the service.

MSN adCenter was moved out of testing in France and Singapore last month, with Microsoft saying it had received positive feedback on the service.

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While Web logs and podcasts have yet to cross over from fad to mainstream, that hasn't stopped Web leaders from embracing the new mediums in order to avoid missing the next big thing. To that end, Yahoo has expanded its news search to include what it calls "grassroots journalism" from blogs and Flickr.

Yahoo says the move is designed to "augment professional journalism" and enables users to search only blog results alongside Flickr photo thumbnails and Yahoo My Web links. The idea is to expose consumers to opinions, analysis and commentary on various topics that may not be covered by mainstream media.

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Centercode is seeking beta testers for a new product designed specifically for T-Mobile USA wireless customers. Although details of the device were not disclosed, it integrates convenience, communication and entertainment features with built-in Wi-Fi and GPRS support.

Applicants to the beta test must be current T-Mobile customers using GPRS. A Windows desktop with broadband Internet connection is required, as is use of Wi-Fi and MSN Messenger. According to Centercode, "There will be a limited number of beta test candidates for this test, so please make sure to apply at your earliest convenience if interested." To sign up, visit the Centercode Callout.

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