The Technophilez

Facebook pushed the boundaries of ad targeting when the online hangout presumed users would want the site to mine their Internet activity.

And its retreat this week — with the decision to make sure users agree first — underscores the risks social-networking sites face in helping businesses employ their wealth of user data to tailor and target advertising messages.

Dozens of commercial Web sites are embedding Facebook's free tool called Beacon to pick up data on users' activity and send alerts to their Facebook friends' "news feeds."

The program now works like this: After you buy a movie ticket at online vendor Fandango, if you agree to share that information, your friends at Facebook may read about it in their news feeds. They can click on one link to reach Fandango, or on another to learn more about the movie you're about to see.

Until Thursday, Facebook gave users at least two opportunities to stop its partners from using their names to make referrals, but the opportunities were easy to miss. Thousands of Facebook users rebelled after they inadvertently revealed to friends movies they were seeing and even holiday gifts they were buying.

"People over time need to come to appreciate that behavioral targeting reduces annoyance and clutter, when done properly," said Chuck Richard, lead analyst at market research firm Outsell Inc. "I don't think this is the way to do it, to spring it on people."

Now, information on what users buy and do elsewhere on the Internet isn't sent to Facebook unless users actively agree. The change could mean fewer opportunities for marketers, but it also reduces the risk of people fleeing Facebook and diminishing its $15 billion value.

"It's a really positive step," said Jessica Parks, 24, a Charleston, S.C., office manager who has used Facebook about four years. "When you join any social network, you are sacrificing a bit of your privacy, but at the same time we have certain expectations."

The notice, which appears in a corner of the Web browser following an online activity or transaction at a partner site using Beacon, still disappears if the user doesn't immediately respond. But instead of presuming consent, Beacon gives the user the choice again later — in the Fandango example, the next time the user buys a ticket.

Facebook still isn't giving users the ability to reject all future sharing with Beacon — that option is only available on a site-by-site basis. The company is counting on users to keep trying it and getting more comfortable over time.

Google Inc. confirmed its plans to bid for a prized piece of the airwaves in an upcoming government auction, further underscoring the Internet search leader's determination to shake up the wireless market and plumb more profits from mobile phones.

Friday's announcement wasn't a bombshell because the Mountain View-based company previously signaled it might participate in the Federal Communications Commission auction scheduled to begin Jan. 24.

In a mild surprise, Google will enter the competition without a partner more experienced in the wireless industry.

Going it alone will be expensive and potentially risky, even for a company as rich and technologically adept as Google, which ended September with about $13 billion in cash.

The bidding for the swath of 700 megahertz spectrum that Google wants will start at $4.6 billion, with analysts predicting the final price will be substantially higher. Building out the network for national coverage might cost an additional $5 billion to $7.5 billion, based on estimates from Citigroup Global markets analyst Michael Rollins.

Lingering questions about how the possible wireless expansion might affect Google's finances and focus on its core Internet business threaten to weigh on its stock in the months ahead.

The uncertainty could last awhile since the winner of the airwaves auction might not be identified until March.

Google shares fell $4 to close at $693 in Friday trading.

On Dec. 4, Microsoft will introduce a new update for the Xbox 360’s dashboard and Xbox Live service. The update is an automatic download for the 8 million Xbox Live subscribers and it includes new features like the Family Control feature that limits how long a child can play with the console in a given day or week. You will also be able to purchase and download games through Xbox Live Originals that were previously only available at retail. It’s another example of how Xbox Live continues to be differentiator for Microsoft in the console market. Hopefully, though, it won’t crash any machines, as there has been some history of that in the past. Here’s a description of the changes:

Xbox 360 Introduces New Features and Console Enhancements with the 2007 Fall Dashboard Update

Free system update hits connected consoles worldwide on Dec. 4; Xbox Originals, Family Timer and more available through download

As promised, Microsoft is bringing some early gifts to your Xbox 360 just prior to the holiday season. Beginning at 2:00 a.m. PST on Dec. 4, the Xbox 360 Fall Dashboard Update will be available for all connected Xbox 360 consoles free of charge, bringing an array of new features and enhancements to the leading gaming and entertainment system.

Among the key new enhancements are the previously announced Xbox Originals game download service, Family Timer parental control feature, and expanded social networking experiences. Xbox 360 owners can also look forward to enhanced navigation, profile and video features and Xbox LIVE Arcade Hits.

This free update will be digitally distributed over Xbox LIVE to the more than 8 million Xbox LIVE members worldwide (Xbox LIVE Silver and Gold) with no disc or hard drive required.  Gamers without an Xbox LIVE account can easily sign up for the free network by connecting their console to a broadband internet connection. New features and enhancements include:

MORE DOWNLOAD OPTIONS:

Xbox Originals – With this new service, announced on Nov. 13, consumers can download-to-own full original Xbox games that were previously only available at retail. The digital shelves will always be stocked with classic titles, such as “Crash Bandicoot: Wrath of Cortex,” “Crimson Skies: High Road to Revenge,” “Halo,” “Fable,” “Fuzion Frenzy,” “Psychonauts,” and more as the catalogue grows over time, at 1200 Microsoft Points per game.

Xbox LIVE Arcade Hits – On Xbox LIVE Arcade, the Arcade Hits program kicks off where some of the best sellers will become available at permanently reduced prices, making it easier than ever for everyone to build a library of downloadable games! The first games to become Arcade Hits will be “Bankshot Billiards 2” and “Lumines LIVE,” which will be available for 800 Microsoft Points each, and “Marble Blast Ultra,” “Small Arms” and “Zuma Deluxe,” which will be available for 400 Microsoft Points each. With free trial downloads for every game and over 100 games to choose from, Xbox LIVE Arcade offers something for every member of the family.

NEW WAYS TO KEEP UP TO DATE AND CONNECTED:

Inside Xbox – A new direct feed brings current news straight from Xbox.com into the Xbox LIVE Dashboard providing members an easy, predictable entry point where they can discover what’s new in: game releases, events, and Xbox LIVE Marketplace offers.

Enhanced online profile – Members interested in sharing a few more details about themselves will have the option to go beyond their motto and further personalize their profile with an expanded bio.  The extended bios will be visible to “Friends Only” or the entire Xbox LIVE community.

Expanded Friends List access – A quick and easy way for gamers to expand their personal community on Xbox LIVE, members will be able to see the Friends Lists of other Xbox LIVE members, boosting their social networking experience on the service.

ENHANCED OVERALL EXPERIENCE AND CONTROL:

Enhanced Parental Controls – Family Timer, a strong and flexible new addition to the Xbox 360 Family Settings, enables parents to set the amount of time their Xbox 360 can be used on a per-day or per-week basis by their children or other members of the household.

New video features – The convenience of full-screen movie previews and enhanced video codec support further expand the options when it comes to the Xbox 360 entertainment experience.

Easy-to-use navigation features – With several noteworthy changes in the Xbox LIVE Dashboard, from the new Game Store button to the Video Store button to enhanced visuals and descriptions in the video library, Xbox LIVE members can find what they want, when they want it.

These features are just some of the new enhancements Xbox 360 owners can expect as part of the Fall Dashboard Update.  On December 4th a list of all the new features and improvements will be posted at: http://www.xbox.com/live.

Google has updated its Google Maps application adding a new feature called "My Location." While the new feature is available for many phones, Apple's iPhone is not among them.

My Location approximates your location by using the surrounding cellular towers instead of GPS data, which is often associated with such features.

"It's not GPS, but it comes pretty close (approximately 1000m close, on average)," said Google. "We're still in beta, but we're excited to launch this feature and are constantly working to improve our coverage and accuracy."

To find your location, you simply press the "0" button while in Google Maps. Your approximate location is shown with a blue dot on the map.

Google said the My Location feature is available for most web-enabled mobile phones, including Java, BlackBerry, Windows Mobile and Nokia/Symbian devices.

User interest in the discussion area for an iPhone version seems high, but the feature is not compatible with the iPhone.

TiVo Inc. on Thursday proclaimed itself winner of the latest round in its battle against EchoStar Communications Corp. after federal regulators validated the digital video recorder maker's patent that is central to the case.

EchoStar was disappointed in the U.S. Patent and Trademark Office decision but said the agency's conclusion won't affect its pending appeal of a court ruling in TiVo's favor. The court decision requires it to pay TiVo $89.6 million in damages for patent infringement and to stop distributing DVRs or to modify features of its products.

TiVo sued EchoStar in 2004, and the patent office launched a re-examination of TiVo's "time warp" patent after EchoStar protested the validity of it. The patent focuses on the ability to record a television program while watching another — a fundamental feature of DVRs.

Alviso-based TiVo agreed the patent office's action won't have a direct bearing on EchoStar's appeal but contended it is important.

"It eliminates any arguments EchoStar can make before the court of appeals about the patent's validity," said Matthew Zinn, TiVo's general counsel. "It also results in a much stronger patent, and it will be difficult for anyone to try to invalidate the patent again."

EchoStar said in a statement it remains hopeful of winning the appeal. The Englewood, Colo.-based satellite TV operator runs the Dish Network and was among the first, along with TiVo, to introduce DVR features in a set-top box.

The case is awaiting a ruling from the Court of Appeals for the Federal Circuit. EchoStar claims the trial court construed TiVo's patent too broadly and that it is not infringing on the patent because its DVR technology is different from TiVo's.

TiVo shares, which were also buoyed by the company's report Wednesday of a narrower third-quarter loss and an analyst upgrade, skyrocketed nearly 25 percent, gaining $1.48 to close at $7.46. Shares of EchoStar fell 14 cents to $42.70.

Nintendo of America said on Tuesday that it sold more Nintendo products during the week of Thanksgiving than at any other time in the company's history.

From Nov. 18 through Nov. 24, Nintendo sold more than 653,000 DS units and 350,000 Wii consoles in addition to millions of games and accessories in the United States.

The DS set an all time sales record for Thanksgiving week, surpassing the previous mark of 600,000 Game Boy Advance systems sold in 2005 for the same period. Said Wii sales represent the highest single week volume outside of launch week a year ago.

"Wii reached 5 million sold in the United States faster than any video game system in history," the company said, "after only 12 months of availability."

In light of the news, Nintendo president Reggie Fils-Aimefurther dismissed speculation that his company is managing supply to generate artificial buzz.

"A shortage benefits no one," he said. "We're disappointed. This was all about how we didn't accurately estimate demand. We need to be more bullish about the potential for the Wii."

Nintendo  of America said on Tuesday that it sold more Nintendo products during the week of Thanksgiving than at any other time in the company's history.

From Nov. 18 through Nov. 24, Nintendo sold more than 653,000 DS units and 350,000 Wii consoles in addition to millions of games and accessories in the United States.

The DS set an all time sales record for Thanksgiving week, surpassing the previous mark of 600,000 Game Boy Advance systems sold in 2005 for the same period. Said Wii sales represent the highest single week volume outside of launch week a year ago.

"Wii reached 5 million sold in the United States faster than any video game system in history," the company said, "after only 12 months of availability."

In light of the news, Nintendo president Reggie Fils-Aimefurther dismissed speculation that his company is managing supply to generate artificial buzz.

"A shortage benefits no one," he said. "We're disappointed. This was all about how we didn't accurately estimate demand. We need to be more bullish about the potential for the Wii."

It's not often that someone trumps Steve Jobs with news on upcoming Apple products, but AT&T Chief Executive Officer Randall did that on Thursday by saying Apple would announce a 3G version of the iPhone in 2008, according to a Bloomberg report.

Stephenson's comments came at a meeting of the Churchill Club in Santa Clara, California. "You'll have it next year," he said. He didn't know how much the phone would cost, saying that Steve Jobs would set the price for the new iPhone.

A 3G network is the third generation of mobile phone standards and technology. One of the main benefits of 3G networks over 2G is the faster data speeds. Unlike Wi-Fi networks that require close proximity to connect, 3G networks are also on in areas where cellular service is available.

There are about 200 million people connected to 3G around the world, with Asia and Europe making up the majority of users, according to the GSM Association trade group.

When Apple released the iPhone domestically in June on AT&T's network, the two companies used Enhanced Data rates for GSM Evolution (EDGE) or Enhanced GPRS (EGPRS). The decision to use the slower 2G standard caused complaints among users, but U.S. customers have the option to use Wi-Fi where available.

One of the problems with the 3G chips is that they are "power hogs," commented Steve Jobs during the U.K. iPhone rollout. Jobs said they expect to see better battery consumption later next year.

Apple has set a goal of selling 10 million iPhones by the end of 2008 -- the company sold its one millionth iPhone on September 10, 2007, 74 days after it was introduced.

Target Corp said on Tuesday that is testing sales of used electronics on its Web site.

Target said on its Web site customers can purchase "pre-owned" Apple Inc iPods, video games consoles and televisions. While results have been positive, it has not made a decision on whether or not it will continue the business.

The discount retailer, on a call with analysts held after it released its quarterly earnings. said it began the test about 30 days ago after seeing that many used electronics returned to its stores in "perfect working order."

On its Web site, it says the used items listed for sales were checked, inspected and refurbished by "either a manufacturer-authorized or Target-managed third party."

"This means they're essentially good as new," the Web site states.

A look at the site on Tuesday showed many used iPods and high-definition flat-panel televisions listed for sale, but there were no used video game consoles available.

French Telecom giant Orange is ready to offer Apple iPhone with a two year contract. Orange has reported on its website that the company will be offering iPhone along with contract for a minimum of Euro 1,176. Apple iPhone has been very popular in the United States. In Germany, thousand of buyers gathered outside the stores to grab the gadget which offers easy Media management, Internet browsing and phone features.

In Germany, Apple iPhone is being sold by T-Mobile. The court has directed T-Mobile to sell iPhones to customers which are not locked to their network. T-Mobile plans to sell unlocked Apple iPhone for Euro 999 compared to Euro 399 with a contract.

Deutsche Telekom AG has filed an appeal at the Regional Court of Hamburg against the initial court ruling to bar the company from selling iPhones with contract.

iPhone has been very successful in the United States. The sales have helped Apple to clock in nice sales in last quarter. The total sales of Apple iPhone, till September this year, in United States have crossed 1.1 million units. Apple is selling iPhone in United States for $300.

Apple iPhone has crossed all the estimates of analysts in terms of sales. Apple plans to sell 10 million iPhones by the end of year 2008. China’s second biggest Telecom Company is also looking at selling iPhones in China if it supports Chinese language.

The 80-gigabyte Zune media player Microsoft Corp. launched Tuesday has sold out across the Web, to the dismay of online shoppers and delight of the world's largest software maker.

"Anyone know where I can get a Cabbage Patch Doll ... er ... I mean Zune?" asks an Amazon.com Inc. customer listed as Paul Taylor on the Web retailer's message board for the product.

Amazon told Taylor and others that their preordered devices for Nov. 13 shipping would not be sent for 10 more days, according to the message board.

While Web retailers have 4 GB and 8 GB versions of the second-generation Zunes in stock, the 80 GB music player is not available on Amazon, Best Buy or Circuit City's Web sites.

Microsoft said it prioritized the manufacture of the smaller Zune 4 and Zune 8 devices, and that more of the 80 GB version should be on shelves, physical and virtual, in the next 10 to 14 days.

Rumors of a manufacturing delay spread across consumer electronics blogs this week.

"I think they were already probably a little later than they would like to be, given Apple's iPod announcement" of a new line of the market-leading devices in September, said Matt Rosoff, an analyst at the independent research group Directions on Microsoft. "They probably wanted to get anything out the door as soon as they could."

Quite a few Zunes have "definitely shipped and sold," and Amazon is being given a limited number each week, said Anya Waring, an Amazon spokeswoman.

Microsoft, for its part, is happy to see such a positive reaction, according to a spokesman.

Microsoft is delaying by six months its annual conference for hardware engineers, where it reveals its upcoming software plans to PC makers and other system builders.

The Windows Hardware Engineering Conference (WinHEC) is usually held in March or April, but Microsoft said next year's show will take place in the fall, or around October. The company didn't say why it was making the change, attributing it only to "industry feedback."

It was also vague about the location, saying it would be somewhere on the West coast of the U.S.

Microsoft used this year's WinHEC to announce the official name for Windows Server 2008, which had been known by its code name Longhorn server. The year before it offered one of the first glimpses of what would become Windows Vista.

Delaying next year's show means hardware builders such as PC and smartphone makers will have to wait another six months to get a preview of Microsoft's plans. Microsoft also uses the show to discuss its long-term vision for the PC industry.

The company's most senior executives are usually on hand. This year they included Chairman Bill Gates, Chief Research and Strategy Officer Craig Mundie, and Mike Nash, corporate vice president for Windows product management.

Microsoft said it will hold a series of "technology specific" events throughout 2008 to keep hardware makers and Windows driver developers up to date with its plans.

In one of its biggest update days in memory, Apple Inc. late Wednesday patched 41 vulnerabilities in Mac OS X, rolled out the long-anticipated (and likely last) update for Tiger, quashed 10 bugs in the Windows version of Safari and upgraded a slew of other applications.

Only an update to iPhoto, one of the Apple-branded applications bundled with Macs, is relevant to users running Leopard, the new operating system introduced three weeks ago.

Both Security Update 2007-008 and the update to Mac OS X 10.4.11 include the 41 fixes, 15 of which could be considered critical by virtue of Apple's designating them capable of "arbitrary code execution," its terminology for an attack that could result in a compromised Mac. The more than two dozen remaining patches fixed flaws that could crash the system or applications, poison the Mac's DNS cache, allow malicious Web sites to conduct drive-by downloads, or let hackers steal information or look at files on the hard drive.

Many of the vulnerabilities were in the third-party components included with Apple's operating system, noted Andrew Storms, nCircle Inc.'s director of security operations. "The majority of the bugs found in OS X and on the iPhone have dealt primarily with third-party applications shipped with Apple's operating systems," said Storms in an e-mail. "Typically, the third-party applications are open-source projects; examples represented here include BIND, bzip and Kerberos. It's good to see Apple put forth these fixes as many of these updates fix critical security flaws."

Included in that category was a fix for a Flash Player plug-in vulnerability made public in mid-July. A patched version of the plug-in has been available for manual download from the Adobe Systems Inc. Web site since then, but this is the first time that Apple has bundled it with an operating system.

Not surprisingly, Internet-related vulnerabilities accounted for a large number of the bugs. For example, the Safari browser; WebKit, the open-source application framework used by Safari, Apple's Mail e-mail client, and other Web-centric software; and WebCore, the part of WebKit that handles HTML rendering, represented more than a third of the fixes, 14 all told.

Apple has patched over 150 vulnerabilities in the eight security updates it has issued so far during 2007.

Safari for Windows, which remains in beta testing, also got an Apple upgrade in a separate download for Windows XP and Windows Vista users. Dubbed Safari Beta Update 3.0.4, the new browser plugs 10 holes, one of which could lead to code execution. Several, however, are classified as cross-site scripting vulnerabilities, which are popular tools for identity thieves on the hunt for account usernames and passwords. Apple's Windows browser has been patched against cross-site scripting vulnerabilities several times since its June release.

The update to Mac 10.4.11 the last to Tiger, if Apple sticks with to tradition also includes numerous non-security enhancements, many of them in performance, reliability and stability areas. For example, 10.4.11 improves compatibility with third-party networking hardware, boosts the reliability of running VMware Inc.'s Fusion virtualization software on Tiger, and makes it more likely users can access external USB disk drives without problems.

In separate downloads, Apple updated Cinema Tools, DVD Studio Pro, Final Cut Pro, iPhoto, Server Admin Tools, Soundtrack Pro and several other of its stand-alone applications.

Google is making the necessary preparations to bid for wireless spectrum in an auction be held in the U.S. in January -- but it will likely need a carrier partner to help build a network to use it, analysts said Friday.

The spectrum, between 698MHz and 806MHz, and collectively called the 700MHz band, is currently used for analog TV broadcasts. It is due to be freed up for other uses, such as operating mobile telecommunications networks, by 2009. The U.S. Federal Communications Commission plans to auction off the right to use that spectrum on Jan. 24, and bidders must declare their intention to participate by Dec. 3.

In July, Google said it would commit a minimum of US$4.6 billion to bid for a license to use the spectrum, if the FCC set certain conditions on the licenses. Those conditions included giving people the freedom to choose what applications and networks they use with the phones they bought, and giving service providers the freedom to connect with those networks and buy wholesale minutes from network owners on reasonable terms.

Google is still making "the necessary preparations" for a bid, a company representative said Friday.

The company is planning to finance that bid alone, without partners, according to a report in The Wall Street Journal.

Laying out that kind of money for spectrum -- and even paying for the construction of a wireless network to use it -- would present no great problem to Google, which, as of Sept. 30, had $13.1 billion in cash and cash equivalents on hand.

But analysts are skeptical of the benefit to Google of going it alone.

"Wireless spectrum and network management are nowhere near Google's core competency. Its competence is in one market, online advertising," said Emma Mohr McClune, principal analyst with Current Analysis.

That sentiment was echoed by Jan Dawson, a vice president at market analyst Ovum Ltd.

"Anything other than search at the minute seems like a move in the wrong direction," said Dawson. With its focus on search-based advertising, Google's financial metrics are "phenomenally better" than those that even the best mobile network operators can achieve, he said. "You have to wonder why a company would diversify into a market like that."

Google's goal may not be to make money from operating the network, though: it could simply be a lever to get its applications into the hands of more mobile phone owners.

It has already taken steps in this direction, offering versions of its Web applications for Apple's iPhone, and launching the Open Handset Alliance to promote its Android open software stack for mobile devices.

"The commonality between all those moves is to get their services running on mobile devices," said Adam Leach of Ovum.

Building a wireless network is too much for Google to attempt alone, say the analysts: the company should seek partners as it has in the handset market.

A carrier partner "is essential to building out and running a network. The core issue is the operations and maintenance of this new network. ... It is not trivial to build and run a telecommunications company," said Bill Ho, senior analyst at Current Analysis.

If Google is to partner with an operator it could choose Sprint, some analysts suggested. The two have already agreed to partner on WiMax services.

Partnering with Google could also be an opportunity for an experienced operator not yet present in the U.S. to enter that market, suggested Dawson. Possible candidates include Orange, a subsidiary of France Tilicom with networks in France, Poland, Spain, and the U.K., or Japan's NTT DoCoMo.

The U.S. is not the only country with plans to auction off analog television spectrum for new uses: The U.K. began withdrawing analog TV service this month, and other European Union countries are set to follow suit.

But the likelihood of this opening the way for a new pan-European service to rival GSM (Global System for Mobile Communications) is remote: each country has different licensing rules for the television spectrum, and the frequencies used are not always the same from country to country.

"I can't see all these auctions collectively creating a new single market," said McClune.

A nonprofit organization called One Laptop Per Child on Monday launched a program that for a limited time allows U.S. and Canada residents to purchase a laptop for a child in a developing country and receive another one for personal use.

Between now and November 26, those residing in the U.S. or Canada can participate in the "Give One Get One" program by paying for two XO laptops, which are packed with learning tools intended specifically for children in developing countries. The laptops are designed, manufactured, and distributed by One Laptop Per Child, an organization created in 2005 by MIT professor Nicholas Negroponte.

T-Mobile said it will offer participants a one-year complimentary subscription to its HotSpot service, which provides Wi-Fi Internet access at over 8,500 locations in the U.S. That includes Starbucks coffee shops, Borders bookstores, Hyatt Hotels, Amtrak stations, and airports.

The XO laptop has a rugged design and is made out of water-and shock-resistant materials for harsh environments. Other attributes include a high-resolution screen that is viewable in direct sunlight or dark indoors, low power consumption, and the ability to be powered by solar energy or energy created using pull cords and hand cranks. The laptop takes advantage of wireless mesh technology that is being deployed in many developing countries that lack a landline phone or cable infrastructure. The laptop has "rabbit ears" that act as a wireless router for Internet access.

Additionally, the laptop uses free and open-source software to allow children and their teachers the freedom to reshape their software, hardware, and content in any way they want, according to One Laptop Per Child.

To help children expand their imagination and creativity, it offers a built-in video camera, sophisticated sound processing, as well as music, gaming, art, and word processing software. Video game maker Electronic Arts (NSDQ: ERTS) has agreed to equip each XO laptop with its SimCity game, enabling children to learn how to build cities using limited resources.

Participants are asked to pay $400 for two XO laptops, although Negroponte's goal is to bring the cost of each laptop down to $100 -- a move that would help speed up adoption in many countries.

One of the laptops purchased will be given to a child in Afghanistan, Cambodia, Haiti or Rwanda. The other laptop will be shipped starting in December to the program participant for personal use. People that participate in "Give One Get One," will be able to write off $200 of the contribution as a tax-deductible charitable donation.

On Monday VMWare announced the release of VMware Fusion 1.1, an update to its "virtual machine" software for Intel-based Macs. A free update for registered users, VMware Fusion costs $79.99.

Fusion enables Intel-based Mac users to run other X86-based operating systems like Windows and Linux at the same time as they're running Mac OS X; the software operates the other operating systems as "virtual machines" running simultaneously with the host operating system.

The 1.1 update adds official support for Mac OS X v10.5 "Leopard," and further improves 3D graphics support, with experimental support for DirectX 9.0. Unity, which lets users minimize Windows applications to the Mac OS X Dock, switch between Mac and Windows apps using Exposi and more, has also been improved. Support has been added for Vista Boot Camp partitions as virtual machines, and the software has been localized for French, German and Japanese. Performance has been improved as well.

VMware has also introduced VMware Importer, a new beta application that lets Fusion users import virtual machines created using VMware Fusion's principal Mac rival, Parallels Desktop. You can download it from the "Drivers & Tools" tab on the VMware Fusion 1.1 download page.

Responding to criticism that its original line of Zune music players -- available only in black, brown or white -- failed to inspire consumers, Microsoft plans to launch on Tuesday a new line of Zunes in a range of colors and bedecked with tattoos, custom engravings, and other artwork.
Microsoft will also introduce a $249 Zune with an 80-Gbyte hard drive capable of storing 20,000 songs, 25,000 pictures, and 250 hours of video. Additionally, two flash memory-based Zunes -- an 8-Gbyte model and a 4-Gbyte model -- will go on sale Tuesday.

The launch comes one year, less a day, after the original Zune player hit stores on November 14, 2006.

Customers who purchase one of the new Zunes through Microsoft's Zune Originals Web site can choose designs from 18 "internationally recognized" artists along with up to three lines of laser-engraved custom text, according to Microsoft.

The new Zunes feature redesigned software that Microsoft claims makes it easier to drag and drop content from a Windows desktop to a connected Zune player. A new search feature gives users a master view across all of their digital files, including songs, videos, and podcasts.

In revamping its Zune line, Microsoft is looking to compete more effectively against Apple and its highly successful iPod music player. Apple recently upped the stakes, introducing the iPod Touch -- a version of the device designed with the look and feel of the company's sought after iPhone mobile phone.

Despite being on the market for a year, Zune sales continue to trail iPod sales significantly. In its most recently completed quarter, Apple said it shipped 10.2 million iPods -- accounting for revenue of $1.6 billion.

Microsoft does not provide precise sales figures for the Zune. Its Entertainment and Devices Division, which houses the Zune, posted total sales in the most recent quarter of $1.9 billion. Well more than half of those sales, however, were attributable to the company's Xbox 360 video game system and related products.

microsoft launched a program to help ensure that PC refurbishers and OEMs reselling used PCs to businesses are installing legitimate copies of Windows on them.

The Microsoft Authorized Refurbisher (MAR) program lets OEMs (original equipment manufacturers) that take old computers and rehab them for resale license Windows for those PCs in bulk. The program, launched Friday, is an extension of Community MAR, which was aimed at charities, educational institutions and nonprofits.

Windows licenses are tied to the computer for which they are acquired. PC refurbishers can reinstall Windows on a rehabbed PC if they have the correct proof-of-purchase documentation -- called a Certificate of Authenticity -- and the original OS image software necessary to return the PC to its original state. However, it's often difficult to have both of these items handy for old PCs, and companies reselling used PCs will sell them without an OS installed. This leaves the PCs open for people who buy them to install Linux or a pirated version of Windows.

The new Windows licenses for refurbished PCs that are available through MAR are the Windows XP Home for Refurbished PCs and Windows XP Professional for Refurbished PCs. Microsoft's public relations firm did not respond to questions Friday about how much these licenses cost.

However, Jake Player, president of TechTurn, an Austin, Texas, company that refurbishes PCs, said Microsoft is offering the licenses at a "significant" discount over what they would cost at retail. He said he was not at liberty to disclose how much the licenses cost or what that discount is. TechTurn has been refurbishing and reselling PCs since 1999.

Microsoft also is making a tool available to OEMs and refurbishers through the program that helps them install Windows in bulk on rehabbed PCs.

According to Microsoft, based on research from Gartner Group, refurbished PCs make up about 10 percent of the worldwide PC market. Companies often don't know what to do with PCs they no longer use and some of them languish in closets or are thrown away, creating industrial waste. Microsoft wants to encourage the reuse and resale of these PCs through the new program and ensure a genuine copy of Windows is on them when they are resold, the company said.

Player said that before MAR, his company would sell a refurbished PC without an OS or purchase a copy of Windows at retail and install it on the PC before resale. He said that whether it happens intentionally or unintentionally, some of the PCs that are distributed without an OS do end up running an illegitimate copy of Windows.

MAR marks the first time Microsoft has clarified when reloading the original Windows OS on the PC is legitimate and when it's not, Player said. He said he's pleased Microsoft is now providing licensing and support for PC refurbishers through the program.

Microsoft has been stepping up antipiracy efforts through a program called Windows Genuine Advantage, mounting numerous lawsuits against companies and individuals it claims are distributing pirated or counterfeited versions of Windows. The program also includes automatic checks on Windows PCs to ensure users are running a genuine copy of Windows. These checks will limit the functionality of a PC with a copy of Windows that is found to be pirated.

The MAR program is currently open to existing Microsoft OEM partners worldwide and to other OEM or non-OEM PC refurbishers in North America. Eventually, Microsoft plans to extend the program to refurbishers outside of North America, the company said.

After introducing a $198 Linux desktop this week, PC vendor Everex said it will bring Linux laptops under $300 to users next year.

The laptops will come with 12.1-inch to 17-inch screens and run the GOS version of the OS, built on Ubuntu Linux 7.10. It will include icons providing one-click access to Web sites like Facebook and multiple Google Web applications.

The company also plans to introduce other mobile devices like ultramobile PCs, said Paul Kim, director of marketing for Everex, a U.S. subsidiary of Taiwanese firm First International Computer.

The notebooks will be introduced in the first half of next year, Kim said. The company provided no additional details, other than saying the mobile devices will be competitively priced.

The energy-efficient $198 Linux desktop from Everex, TC2502 Green gPC, was introduced in Wal-Mart retail stores Wednesday. It runs on a 1.5GHz Via C7-D processor and comes with 512M bytes of RAM, an 80G byte hard drive, a DVD player and an Ethernet port. It does not include a monitor.

"The intent of GOS is to take [Linux] to the consumer and do what Steve Jobs did with Mac OS X -- to take an alternative OS and package it for the consumer," said David Liu, founder of GOS.

Microsoft's Windows Vista OS has done a lot of damage to the low-end PC market, so there is a great opportunity for a smaller and leaner OS, Liu said. Linux has come a long way and could grab an audience in the low-end market, Liu said.

More than the OS, for the end user it's more about the ecosystem of applications that can work, Liu said. GOS bundles applications in a coherent way that makes the OS easy to use, he said.

However, most people looking to buy a $199 machine will not know Linux, said David Milman, founder and CEO of Rescuecom Corp., a U.S. firm providing computer repair and support services.

"I don't see Linux to the masses as anything more than a way to facilitate Internet access and computing," Milman said. Economically-minded consumers looking to buy an Internet appliance will find the $198 Linux desktop a reasonable machine, Milman said.

The Linux desktop doesn't spell the end of Windows, either, Milman said. "Many people calling Rescuecom [for support] don't know what an OS is," Milman said. People will try to load Office on the desktop, and when it doesn't load, they will be disappointed and return the machine. That's going to be a challenge for Wal-Mart."

Wal-Mart's decision to carry the PC could boost sales of Windows-based PCs by capturing some mindshare and increasing traffic to the PC sales area, said Brian Paterson, vice president of marketing for ASI Computer Technologies Inc., a computer hardware distributor.

Compared to Windows PCs, previous attempts by Wal-Mart to sell low-cost Linux-based Lindows and Microtel PCs were failures, Milman said.

Everex studied the Lindows and Microtel PCs and is confident its $198 PC will succeed. GOS Linux brings familiar Google icons and applications to users, which earlier PCs didn't have, Everex's Kim said.

With its Google-friendly interface, this PC is a good test for Google OS, if rumors of one being under development is true, Paterson said. "It's a perfect way to launch [Google OS] in a mistake-OK world," Paterson said.

The Everex TC2502 Green gPC desktop will be available in about 600 stores on a test basis, a Wal-Mart spokesperson said in an e-mail statement.

Following a week of scrutiny and controversy, the Entertainment Software Ratings Board announced Friday (November 2) that the video game "Manhunt 2" will not be re-rated back to its original Adults Only status.

"Manhunt 2" was released this week. On Wednesday, Halloween, news broke that Russian hackers had found a way to alter the code of the PSP version of the game in such a way that would remove obscuring special effects from some of the game's more gruesome kills. These modifications, which involved dumping the game's code onto PC and changing a few programming lines, prompted calls from the Parents Television Council and California State Senator Leland Yee to revert the rating of the game to the AO rating that delayed its original June release.

"We do not believe these modifications fully restore the product to the version that originally received an AO rating, nor is this a matter of unlocking content," ESRB President Patricia Vance said during a Friday afternoon conference call with reporters. "We have investigated the matter and concluded that unauthorized versions of the game have been released on the Internet along with instructions on how to modify the code to remove the special effects. ... Our investigation indicates that the game's publisher disclosed to the ESRB all pertinent content in the authorized Mature-rated version of 'Manhunt 2' now available in stores, and complied with our guidelines on full disclosure of content."

"Manhunt 2" development studio Rockstar Games and publisher Take-Two Interactive Software confirmed the hack of the game on Thursday, according to GamePolitics.com. In a statement to the site, Take-Two Interactive Chairman Strauss Zelnick said, "I stand behind the game and the ESRB ratings process. It is unfortunately the case that no one in the entertainment-software industry is immune from hacking. We hope that consumers will not engage in hacking or download illegally modified copies of our games. We encourage them to enjoy our games as they are meant to be played. We would also like to emphasize that 'Manhunt 2' is intended for an audience aged 17 and above."

The PlayStation 3 officially gets its second price cut in less than a year.

Announced in October, the new smaller capacity PS3 launches in the U.S. Friday, just in time for the holiday shopping season as Sony aims to better compete against rivals Nintendo and Microsoft.

The new 40GB PS3 comes bundled with Spider-Man 3 on Blu-ray but lacks PS2 playback, additional USB ports, and multi card memory support. It retails for US$399.

"We're pleased to offer the consumer a lower price point without sacrificing the core technology components that make PS3 the most advanced high-definition entertainment system available," said Jack Tretton, president SCEA. "Every PS3 comes with a Blu-ray drive, HDMI output, an integrated Wi-Fi connection, Cell Broadband Engine and a built-in hard-drive."

Never mind all of that talk about a cheap HD DVD player from China (Venturer who? Exactly. Move along.). Today you can get a Toshiba HD DVD player virtually free.

In a one-day sale, Best Buy stores burned through their stock of second-generation Toshiba HD DVD player, the HD-A2, with a $100 firesale. According to Dealcatcher.com, Best Buy has sold out of these players. The third-generation replacement, the HD-A3, sells for $300.

The Toshiba HD-A2 will also be selling for $100 at Wal-Mart's "Secret Sale" starting this Friday, according to Dealcatcher. Previous reports indicate that Wal-mart will have a sub-$200 HD DVD player as well.

That aggressive pricing is somewhat stunning considering that you can get five free movies by mail along with your HD DVD player purchase. And, that pricing is right in line with the pricing of an upconverting DVD player--which makes these deals a doubly good bargain (heck, no matter how the format war turns out, you still have an upconverting DVD player, for barely any premium). At $100, all of a sudden the paradigm changes: The buying mindset shifts from one of upgrading to a new format to getting support for the new format as a no-risk bonus.

Want to play play Cars or Ratatouille ? For that, you'll need a Blu-ray Disc player, since those titles are exclusive to rival format Blu-ray Disc.

Meanwhile, Blu-ray Disc players will continue to come with their own free movie incentive, too. Blu-ray Disc players will also drop in price heading into the holiday season, says Richard Doherty of the Envisioneering Group. But not nearly by as much as HD DVD: "Our research shows Blu-ray players will be at $348 for Black Friday," he adds. "And we think that you'll have no trouble finding a Blu-ray player for under $400."

If price alone were going to determine this format war, HD DVD clearly has the lead there (granted, we're talking about the loss-leader, lower-end 1080i HD DVD players to 1080p Blu-ray Disc players, but the point still stands). Under $400 for a Blu-ray player will be a terrific move considering the players cost more than double what they did a year ago. But $400 is still a long way from being a casual upgrade from buying an upconverting DVD player.

So much for Mac users avoiding bugs, worms, and other security Relevant Products/Services nuisances. A Trojan targeting Macs is on the loose, and it's hanging out on porn sites, according to security researchers.

The incident was first reported by Intego, a Mac security software Relevant Products/Services vendor. Sunbelt Software, the SANS Institute's Internet Storm Center (ISC), Sophos, and McAfee have confirmed the Trojan. Dubbed "OSX.RSPlug.a," the Trojan changes the Mac's Domain Name System (DNS) settings to redirect unsuspecting users to different sites.

"The whole Trojan is relatively simple and works almost exactly the same as its brother for Windows," said ISC analyst Bojan Zdrnja in a warning the center posted on Thursday. "The bad guys are taking Mac seriously now. This is a professional attempt at attacking Mac systems, and they could have been much more damaging."

Porn Opens the Door

The family of malware Relevant Products/Services that is targeting Macs is called "Puper." It's been plaguing Windows users since 2005. One of the most notable cases of Puper attacks was exploits on infected MySpace pages.

In the Mac attack, people who are searching for porn on the Internet may find it. But they may also find a nasty payload when they encounter a popup window instructing them that QuickTime needs to install new software so they can view the videos. If the user tries to install the codec, a script then creates a scheduled task to change the Mac's DNS to point to a malicious server.

Mac Malware Short List

The OSX/RSPlug.a Trojan is on a very short list of malware that's been specifically designed to target Mac OS X, according to Graham Cluley, senior technology consultant for Sophos. The motive of this particular Trojan could be for the purposes of phishing, identity theft, or simply to drive traffic to alternative Web sites, he said.

The good news is the Trojan doesn't exploit a vulnerability in Leopard, Tiger, or any Apple code. This Trojan exploit depends on a user to take actions to open the door to the nasty payload.

"This is not a red alert, but it is a wake-up call to Mac users that they can be vulnerable to the same kind of social engineering tricks as their Windows cousins," Cluley said. "The truth is that there is very little Macintosh malware compared to Windows, but clearly criminal hacker gangs are no longer shy of targeting the platform."