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The ringleaders of what Microsoft have described as "the world’s largest software counterfeiting syndicate" have been jailed by the Futian People’s Court in Shenzhen, China.

Sentences of up to six and a half years were handed to the 11 software pirates, some of the longest sentences ever given in China for a crime of this nature. It is estimated that $2 billion worth of fake Microsoft software was produced and distributed by the gang across 36 countries. This included counterfeit versions of 19 Microsoft products in at least 11 languages.

The pirates were arrested in July 2007 after being tracked down by China’s Public Security Bureau and the FBI, with help from Microsoft and its customers and partners. By using the company’s Genuine Advantage tool, tens of thousands of users were able to identify their software as fake and action by Microsoft resellers also helped to further the investigation.

Read more @ Neowin.net

Scott Wylie, Microsoft’s New Zealand Director of Development and Platform Strategy, revealed a Windows 7 build 7004 screen shot on his blog yesterday.

The build in question was compiled on the 3rd December with the tag 7004.0.081203-1830 according to Winfuture. Microsoft employees were given access to the beta build earlier this week with a welcome message that read "Thank you for joining us on our shared journey to Windows 7. The work we’ve done is largely based on the feedback we’ve gotten from you before and throughout the development process. We rely on beta testers, like you, to help refine the product before it’s commercially released. If you haven’t already installed the Beta, we want you to! Please refer to the Installation Instructions to get started".

Build 7000 is due to be beta 1, build 7004 is the next branch that starts for the RC/RTM phase. From the small screen shot you can tell that the folder icons on the desktop are coloured blue like Live Mesh folders and have a glass tint across them. As the screen shot is so small it’s hard to tell whether any elements have truly changed visually. We expect the blue coloured folders are simply Live Mesh synced folders rather than newly coloured folders.

Microsoft is expected to announce the Windows 7 Beta 1 on 7th January 2009 at Steve Ballmer’s CES keynote.

Microsoft’s tricky balancing act in 2009 will be to phase out Windows XP while boosting demand for Windows Vista and building anticipation for Windows 7. Compounding this challenge is that Vista has been Microsoft’s most embattled operating system, and though recent reports say that Vista has improved over the past year, there are also reports of a growing indifference from users.

Many are sticking with Windows XP for now (or even requesting to "downgrade" to XP with new computer purchases) with the hope that Windows 7 will be more nimble and efficient than Vista.

With the RTM release of Internet Explorer 8 and the possible release of Windows 7 happening in 2009, plus Microsoft’s aggressive push into cloud computing with the Windows Azure operating system, the coming year looks to be a pivotal one for the software giant. Gartner analyst Michael Silver expects that Microsoft will try to differentiate Windows 7 from Vista by keeping ship date hype to a minimum and then delivering earlier than anticipated.

Microsoft Asia Pacific has responded to researchers’ claims that enterprise chief information officers "have not warmed to the Vista operating system over the past year."

The northern hemisphere researchers said that the CIOs they recently surveyed voted 11 to one against plans to implement Vista. The researchers concluded that "CIOs and other heads of IT still believe there is little business value in migrating from XP to Vista, especially in the current economic climate."

Richard Francis, General Manager, Windows Client Group, Microsoft Asia Pacific, said that, overall, sales of Windows Vista licenses have passed 180 million since launch, and at least 100 million Windows Vista users have actively hit Windows Update. Francis also claims that this is the right time customers are starting to deploy, especially with Windows Vista SP1.

Francis also added that they (Microsoft) have received positive feedback from enterprises and SMB customers in APAC who have experienced the business benefits of Windows Vista and that the history of the operating system lifecycle clearly suggests an increase in deployment 18 months into the launch or close to release of SP1.

Microsoft has been seeking to land new OEM search deals with various PC makers (like Lenovo) as a way to grow more quickly its lagging search market share. Not to forget their web search deal with Linspire too.

Mary Jo Foley reports that Microsoft and Dell have signed a deal via which Dell will be shipping new PCs with the Live Search toolbar preinstalled, according to sources familiar with the arrangement between the two companies. Microsoft officials declined to comment on the alleged deal, as did Dell officials. Officials with both companies said they would not comment on "rumors and speculation."

Foley also added that her sources say Microsoft has offered Dell sweet enough terms to entice the PC maker to replace its search-preload deal with Google with a comparable offering from Microsoft. OEM deals are just one way Microsoft is looking to grow its search share.

Microsoft CEO Steve Ballmer again voiced support for purchasing Yahoo or its search business, hinting in a published report that a deal between the two companies may be reached before the end of the year. Ballmer also reiterated that Microsoft can fight Google on its own.

In an interview with The Wall Street Journal after the appointment of former Yahoo executive Qi Lu to run its online services group (OSG), Ballmer said that a search deal "makes great sense" for Microsoft and Yahoo, but would be more advantageous for both companies if struck soon.

However, Ballmer also told the Journal that Microsoft and Yahoo are not currently in talks about a deal, but also said he would not admit publicly even if they were.

Will Microsoft ever buy Yahoo? That’s a million dollar question Ballmer only can answer for now!

Microsoft is going from marketing computer programs to making clothes, with a new line of graphic tees dubbed "Softwear by Microsoft." Softwear … instead of Software. It’s no surprise that Crispin Porter & Bogusky—the agency Microsoft is relying on to make it cool—had a hand in the line of urban geek shirts expected to hit select stores on December 15. Crispin conceived of the collection, the branding and many of the designs, as well as all the marketing materials, an agency representative said.

The line features retro MS-DOS fonts and a Bill Gates mugshot tee. It launched this week with a bash in New York. Microsoft calls it "a clothing line that taps the nostalgia of when PCs were just starting to change our lives…"

News source: AdAge.

The Xbox 360 is a powerful gaming system, capable of delivering an incredible experience for gamers. However, console ownership can be fraught with problems. Numerous issues can rear their ugly heads, including the 3 red light error (RROD), the 1 red light error, loss of video output, the 2 red light error (general overheating) and many more. To combat these issues, numerous remedies have been devised. Unfortunately, many of these repairs are dangerous, not only to the console, but to you, the owner. Repairs such as the Xbox 360 towel fix are unreliable at best and dangerous at worst.

What Causes the Errors?

Numerous technical issues result in most red light errors on the Xbox 360 console. At the heart of the situation lies Microsoft’s rush to get their product on the market. Unfortunately for gamers, this mad rush bypassed vital testing and development stages. The result is a powerful console that experiences far more than its share of problems. For those with a technical interest in the issue, the problem is as follows:

Microsoft utilized low-quality lead-free solder to secure the GPU, CPU and RAM to the motherboard. In addition, the cooling system implemented in the console is insufficient to disperse the incredible amount of heat generated during normal operation. Additionally, the X-clamp method used to mount the heat sinks over the CPU and GPU chips results in heat buildup directly below the chips, while the thermal protective paste used on the chips is also the wrong formulation, creating more problems.

The heat generated during operation causes the lead-free solder to become brittle and form hairline cracks. As the console heats up during game play, the motherboard flexes due to expansion. This flexing causes the cracks in the solder to widen and can even dislodge the GPU chip. Sometimes the CPU can also be affected by this process. This causes all manner of errors, from the Red Ring of Death to loss of video output.

Microsoft has recognized the significance of their production error, but has only extended their factory warranty to three years for the 3 red light error. While the other errors are known to be caused by the same issue, the manufacturer has not extended coverage for these areas.

For those without a technical bent, the answer is:

Microsoft sped through development of the console and did not follow proper guidelines. When the company encountered a problem of space, rather than redesigning the system, they simply reduced the size of the heat sinks. This results in massive amounts of heat affecting the solder holding the GPU in place. During normal game play, the motherboard flexes, the solder holding the GPU in place breaks and the GPU is pushed out of contact with the motherboard. Because the GPU is responsible for rendering the graphics for game play, the result is that you no longer have a functioning game system.

What Does This Mean for My Xbox 360?

In short, it means that your console will no longer function. If the errors you experience are not alleviated through simple troubleshooting steps, repair is the only option remaining. If this occurs, you have two choices. You can send your console back to Microsoft and wait for two months for the repair to be completed, or you can attempt to repair the problem on your own. If you have warranty coverage remaining, sending the console back is the best option. However, if you do not have any remaining coverage, or are simply unwilling to wait two entire months for Microsoft to repair their own error, you can easily repair the problem on your own.

As a note, dangerous remedies like the towel Xbox 360 repair procedure should not be attempted. This fix involves wrapping your console in a towel, turning it on and letting it heat up to an excessive degree. The theory behind this is that the heat will soften the solder, and help remove the cracks causing the problem. Unfortunately, this method does not work. In fact, it can damage your console beyond repair, cause fires and more. Other risky "repairs" include placing the console in a freezer or the refrigerator, setting it outside during cold weather or placing it over an air conditioner vent to cool off. These will certainly help the console cool off. However, the difference between the cold outer air and the hot inner air can cause condensation inside the console, coating the delicate electronics with a sheen of moisture. This can cause short-circuits, fires and irreparable damage to your console. Don’t risk these dangerous repairs!

What Can I Do?

Repairing your console is actually very simple. In addition, it can be accomplished in about an hour, using only tools that you already have. However,  you will need a viable Xbox repair guide that shows you the process in a systematic manner. You need not be an electrician or even technically inclined to accomplish the repair, either. All that must be done is a slight modification to the cooling system, adjusting it to provide better heat dispersion during game play. Ensuring that the GPU chip remains in contact with the motherboard is a simple process. Anyone can do this repair, in the comfort of their own home and without the hassle of sending the console back to the manufacturer.

If you choose to send a console that is out of warranty back to Microsoft, or send in a console that does not have a red ring error back to the manufacturer, you can expect to pay $150, as well as endure the lengthy wait for the repair to be completed. While Microsoft obviously understands that the error is their fault, do not expect them to provide you with a helping hand. If you are out of warranty, repairing the console yourself is the fastest, most effective way to get back to gaming.

About the Author

Anthony Uccello is an avid Xbox 360 gamer and has been playing video games since Atari. He bought his Xbox 360 the day of the launch and was enraged when his Xbox 360 stopped working because of the red ring of death error. It was then he founded his own Xbox 360 troubleshooting site and and has been helping people fix their Xbox 360’s ever since, and his online Xbox 360 repair store has repair guides for the red ring of death.

According to a report on the Times of London Web site, Microsoft Corp. has resumed its pursuit of Yahoo in a deal that could cost the Redmond-based company $20 billion, less than half of what it offered for the search site this summer.

The report, which you can read here, says Microsoft has put forward Jonathan Miller, ex-chairman and chief executive of AOL, and Ross Levinsohn, a former president of Fox Interactive Media, to lead a new management team at Yahoo under a 10-year agreement. Microsoft would have a two-year option to buy Yahoo outright for $20 billion. The report also says senior management at both companies "have agreed (to) the broad terms of a deal, but there is no guarantee that it will succeed."

As recently as last week, Microsoft CEO Steve Ballmer told company shareholders that the company had no intention of resuming its pursuit of Yahoo, which collapsed over the summer when Yahoo rejected Microsoft’s offer of $33 per share, or nearly $50 billion. Since then, Yahoo shares have dropped to less than $9 per share, although the stock has rebounded above $11 recently.

The P-I is awaiting a comment from Microsoft.

The situation at Yahoo has changed considerably in recent weeks as CEO Jerry Yang, one of the founders of the company, has announced he will step down from his post. Yang led the fight to reject Microsoft’s offer earlier this year. Since then, billionaire investor Carl Icahn has won a fight to get a seat on the Yahoo board and has built a 5.5% stake in the company, according to the Times report, which cited Securities and Exchange Commission filings.

Source: Seattle PI

Following on from the recent announcement of Windows Mobile 6.5 comes fresh rumours regarding Microsoft entering the mobile phone market themselves.

For years Microsoft has provided the operating system for use on a wide range of handsets by different manufacturers. This might be about to change. If you believe recent rumours, then Microsoft is allegedly going to launch a mobile phone based on Nvidia’s new Tegra CPU which would be annoucned at the forthcoming GSMA Mobile World Congress in February 2009.

Microsoft has used the annual event to introduce previous versions of Windows Mobile. With the news, in late September, of a delay in Windows Mobile 7 the company has been hurrying to make Windows Mobile 6.5 available to handset manufacturers and operators as soon as possible. News leaked early this year regarding the features of Windows Mobile 7.

If Microsoft is planning its own device and Windows Mobile 7 will be powering it then the delay could make for a rather interesting coupling for next year. Roll on February.