Microsoft is set to offer either free or discounted Vista upgrades to those who purchase new computers during the holiday season, press reports indicate. To qualify for the coupons, a PC would need to be purchased after October 28 of this year, and the upgrade would be good through March 15, 2007.

The Redmond company would not confirm the program publicly, other than saying "we're working with partners on this." Reports indicate that the free or discounted upgrade would be based on the version of operarting system installed.

A Portugese-language blog post from a member of the Windows Local Test and Support team in Brazil Wednesday, along with a download page on Microsoft's Web site confirmed that Windows Vista RC2 is arriving shortly, and will be available for public download.

According to the Web page for Customer Preview Program (CPP) participants, which has since been removed, RC2 will be build 5744.

Microsoft said Wednesday that it plans to clamp down hard on piraters of its next-generation operating systems, crippling both Windows Vista and Windows Server "Longhorn" if users fail to activate their copies within 30 days.

While the restriction of operating system features has been around since the advent of Windows XP in 2001, the new program takes that process a step further. It would also make widely distributed volume-license product keys -- traditionally supplied to corporations -- harder to use.

The scope of security vendor Symantec's recent set of complaints against Microsoft concern a future feature of Windows Vista entitled PatchGuard, which Microsoft describes as a facility that protects the operating system kernel against being patched or rewritten by an outside, unauthorized source - for instance, a rootkit.

"Patching fundamentally violates the integrity of the Windows kernel," reads an August 11 blog post by Microsoft kernel security architect Scott Field, "and is undocumented, unsupported and has always been discouraged by Microsoft." Without explaining exactly how PatchGuard will do this - for obvious reasons - Field makes the promise that, "If the operating system detects an unauthorized patch of certain data structures or code it will initiate a shut down of the system."

Microsoft acknowledged Tuesday that developers looking to build applications on Windows Vista will need to upgrade to Visual Studio 2005 SP1, highlighting compatibility issues the company is dealing with as the new operating system nears release.

Both Visual Studio 2002 and 2003 will not work on Vista, and the most recent update to Visual Studio 2005, Service Pack 1, will likely have compatibility problems. Microsoft is working hard to resolve those issues before Vista ships. Developers can continue to use Windows XP to build applications that also run on Vista.

Microsoft and the New York Times have made available a desktop application for reading the newspaper's content on a PC, which was built using WinFX and takes advantage of new features in Windows Vista. The Times Reader was first unveiled in April as an example for developers.

Specifically, Vista's WPF display technologies enables NYT content to be automatically adjusted for any screen size, with users able to customize font size and content relevance. The application also utilizes the same font styles as the print edition of the New York Times. Download the Times Reader beta from FileForum.

Microsoft on Friday made available the first post-RC1 build of Windows Vista to technical beta testers, which is numbered 5728. The interim update includes a number of bug fixes and interface polishing, but is most notable because the 5700 range has been allocated for the final Vista build, indicating RTM could arrive as scheduled next month.

"Sven’s team has set aside a specific range of build numbers to incrementally build toward Windows Vista's Release Candidate 1 (RC1) milestone; in this case, build numbers ranging from 5400 through 5699. Likewise, numbers beginning with 57XX have been set aside for the RTM (Release-to-Manufacturing) release," Windows Vista product manager Nick White explained in a blog post last month. Vista beta testers can download Build 5728 from Connect. It will also be available to select CPP participants, as well as MSDN and TechNet subscribers.

With Release Candidate 1 now out the door, Microsoft is putting what it calls the "fit-and-finish" on Windows Vista's user interface, and the company is looking for feedback from users testing out the beta release.

Dave Vronay, a research manager with the Windows User Experience Compliance team, says Microsoft is taking a lot of time to track down minor UI glitches - something it has never done before. "You can actually participate in this process by providing your feedback on the various pre-release versions of Vista we are putting out," says Vronay. The company is hosting a forum in which users can offer their rants and raves. You can also leave your thoughts below.

It's no surprise that Symantec and Adobe are wary of Microsoft bundling its own security software and electronic document format in Windows Vista, but the companies had yet to lodge official complaints about the operating system until now.

According to a report in Thursday's Wall Street Journal, Adobe has told the European Commission that Microsoft should be barred from building into Vista competing software for reading and creating electronic documents. Adobe developed PDF and is the leading provider of software for the format.

In an open letter posted on MSDN, Microsoft's Windows chief Jim Allchin called on developers to start building "cool" applications for Windows Vista, promising "new opportunities on a scale you haven't seen since Windows 95."

Allchin, who is retiring after launch, says that barring any last minute quality issues, Vista is on track to reach consumers in January. Analysts are predicting that the new operating system will be installed by 200 million people within the first 24 months, the quickest adoption of any Microsoft OS. "Millions of people will be looking for applications," Allchin noted.

Likely aimed at allaying European Union fears, a Microsoft-commissioned study by research firm IDC indicates 50,000 jobs would be created across six countries in Europe as a result of Vista. While the study confirmed Microsoft is expected to profit handily off the next-gen operating system, the profits for partners would be much greater, it said.

IDC expects Vista to be installed on 30 million computers across those six countries, and 105 million worldwide during 2007.

Microsoft elaborated on its fall and winter hardware lineup on Thursday, announcing three new wireless keyboard and mouse packages, along with three new wireless mice. The first products would begin shipping this month, with launch dates throughout the winter through February 2007.

"We are pushing the envelope on hardware design to meet the new ways consumers are using their PCs at home and in the office," Microsoft hardware designer Dan O'Neil said. "Keyboards and mice are no longer just about typing and clicking - they are an extension of the individual's personality."

Those eager to try out the newest release of Windows Vista, which has received positive reviews from analysts and testers alike, can rest easy: RC1 is now available to the general public. Microsoft expects the latest beta code to reach 5 million people through the Customer Preview Program.

"RC1 represents a significant industry milestone on the road to delivering Windows Vista, and customer participation and feedback are integral parts of the development process," a company spokesperson told BetaNews. "The feedback received thus far from testers has been extremely valuable." Download Windows Vista RC1 now and tell us what you think!

The war of words between Microsoft and the EU continued Tuesday, with the European Commission warning that Windows Vista's built-in security features should not shut third party vendors out of the market.

The warning came after Microsoft made a public statement on the matter, telling reporters that the EU should not attempt to block the security features, as the move would only put customers at risk and delay Vista's launch in Europe. Microsoft has often used the press to put pressure on the EU Commission.

Stephen Toulouse, a program manager for Microsoft's Security Response Center who often served as the public face for the company's security woes on the MSRC blog, is taking a new job with the Windows Vista team. His focus, not surprisingly, will be on operating system security.

Toulouse's says his new role will be more proactive, as opposed to the reactive nature of MSRC, which responds to new security threats with patches and advisories. He will begin with a focus on Vista and continue that work with other Microsoft products.