At least Redmond can't say that no one told them so, as the folks at Microsoft are finally holding up a hesitantly-raised white flag and admitting that Windows Vista is indeed far from crack-proof. After depressing the mental "Allow" button, Microsoft Senior Product Manager Alex Kochis has come to grips with the Vista hacks that are currently floating around (and apparently functioning). Interestingly, he insinuates that the company will be looking at ways to "disrupt the business model of organized counterfeiters and protect users from becoming unknowing victims," but also mentioned that it wouldn't be rushing out in a likely futile attempt to nab every "mad scientist" (saywha?) on a mission to hack Windows. Hmm, wonder if that has anything to do with the barren efforts it exhausted trying to one-up FairUse4WM?

Considering that Vista isn't exactly getting perfectly positive praise, it looks like Microsoft is looking into other ways to bring cashflow to Redmond. While we already know the firm is diving head first into the VoIP handset market, it looks like it'll also be involved with a new virtual headphone. In an effort to allow VoIP / computer-based communications to be handled without tethering yourself to your PC and also allow you to hear ambient conversations around the office, researchers at Microsoft have "developed an algorithm that adjusts the timing of sound waves emitted from each speaker in an array, creating a focused beam of sound that acts as virtual headphones." Essentially, the speakers would create a "sweet spot" so that computer users could hear the audio perfectly, while individuals just inches away from the sound zone wouldn't hear much more than a peep. Furthermore, the focused wave technology could even bleed over into the tracking realm, which could actually allow the tones to follow one around as they move. Ideally, the creators want to conjure up a beamforming system that is easy to configure and relatively inexpensive, but we're hearing (ahem) that it'll be at least three years before these aural luxuries break into the corporate sphere.

No, we're not talking Apples and Apples here, nor does this have anything to do with Bono (nor the Edge, actually); rather, Belkin and Microsoft have finally made nice regarding Belkin's consistent use of Microsoft's "U2 technology," which allows keyboard and mice to detect what type of connection (USB or PS/2) is needed. While other accessory makers, namely Targus and Fellowes, have been paying Gates and Co. royalties for years to borrow said technology, Belkin has been resisting the pressure "for more than two years." Eventually the misalignment between companies came to blows, creating a lawsuit that suggested Belkin pay fees for using the detection technology in its third-party peripherals. The decision was settled when Belkin finally agreed to pay an undisclosed amount to the Redmond giant to continue using its patented U2 goodness, and both sides actually went so far as to say they were "pleased" with the outcome. C'mon folks, can't we just learn from this and all strive to get along?

Even though we've resigned ourselves to the fact that Windows Vista isn't coming out until it's good and ready, EU regulators aren't as forgiving as us when it comes to Microsoft playing the delay game, and have hit the software giant with a $357 million fine based on that 2004 anti-competition ruling. What's more, EU Competition Commissioner Neelie Kroes has decided to slap the company with a three million euro-per-day fine starting on July 31st if the document disclosure stipulation of the original decision -- which requires Microsoft to make the Windows source code more accessible to rivals provide technical information to makers of competing server software -- has not been fulfilled. Redmond, for its part, claims that it has been fully cooperating with regulators; general counsel Brad Smith argues that the commission's original demand was too vague, and therefore the issue is not one of compliance but clarity. In the end, Microsoft can complain all day and night about unfair rulings and unclear requirements, but if it wants to continue having unfettered access to the lucrative European market, it seems the company has little choice but to toe the line on this one.