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Microsoft and lawyers representing more than 100 private class-action lawsuits plan to amend their controversial settlement agreement on Monday. Attorneys for Microsoft and the plaintiffs cut the deal last month in the antitrust cases, agreeing to set up a private foundation to aid needy schools and donate an estimated $1 billion in money, software, services and training over five years. Microsoft also would provide Windows licenses for refurbished computers donated to the schools. The changes set for Monday are intended to respond to some of the most sharply criticized aspects of the deal: How much choice is afforded the schools and how funds are to be used for training.

Microsoft Corp. said on Sunday it has shipped 1.1 million units of its new video game console, the Xbox, to retailers, with at least 300,000 more to be shipped by the end of this month. The software giant, which has declined to say how many units of the Xbox have actually been sold since its Nov. 15 launch, has said it planned to ship between 1 million and 1.5 million units to North American retailers this calendar year.

The company had initially said it would have 600,000 units to 800,000 units on day one, but then said it could not be sure, and has since declined to say how many it had at launch. Analysts have estimated launch shipment at around 300,000 units.

Advanced Micro Devices stock jumped a day after the chipmaker increased its quarterly revenue expectations, but shares of Intel dropped slightly after the company's widely expected positive comments at its midquarter business update. Shares of AMD sprung as much as $2.40, or 15 percent, on Friday, to $18.65 on the New York Stock Exchange, ending the day up $1.65, or 10 percent, at $17.90. Meanwhile on the Nasdaq, Intel stock dropped as much as $1.41, or 4 percent, to $32.75, closing down 92 cents, or 2.69 percent, to $33.24.

Microsoft on Friday released its retirement schedule for NT Server 4.0 operating system. All sales will end by July 2003, and companies will start having to pay for support. The company stopped selling Windows NT Server 4.0 volume licences for both the Standard and Enterprise editions on 1 October this year. Client versions of NT 4.0 were also discontinued in October.

On 1 July 2002, the packaged Standard and Enterprise versions of Windows NT Server 4.0 will disappear from the retail channels and PC manufacturers will stop selling these versions together with Terminal Server Edition, which lets users log in through thin terminals. On 1 July 2003, the System Builder channel (value added resellers) will also stop selling the operating system.

In this edition watch NASA Missions, take a look at VS.NET trailer, view all XP TV Episodes, learn what Intel and AMD are up to, full round up of Microsoft case, and tone more...

Microsoft Chairman Bill Gates said on Thursday the Internet's role as an important mass medium for advertisers was hobbled by the slow rollout of high-speed broadband service and was still years away.

"If it's there and on all the time," Gates said of Internet access, "you would use it quite extensively." He added it should become a priority for political and corporate leaders to make broadband access products more available to home users. "That's the element that will drive forward," Gates said.

The U.S. Commerce Department has approved a new, stronger data-encryption standard intended to replace an aging standard first adopted in 1977. The Advanced Encryption Standard (AES) is intended to protect both personal and financial data for government and commercial use. It will replace the Data Encryption Standard (DES) adopted by the National Institute of Standards and Technology (NIST) in 1977 as well as the Triple DES protocol used now. AES supports 128-bit, 192-bit and 256-bit keys, much larger than the 56-bit keys that DES supports.

This week, Microsoft extended its reach in China by getting the country's top PC makers to agree to bundle Windows XP on their PCs and to promote antipiracy measures. Also, Microsoft released Pocket PC 2002 in China, which is the third largest software market in the world and the fastest-growing market for Microsoft software.

The antipiracy pledge is particularly important because more than 90 percent of software bundled with new PCs in China is pirated. But Microsoft hopes to recoup lost revenues with an agreement from the country's top four PC makers to end this practice and preinstall XP on all their new PCs. The companies--Great Wall, Legend Holdings, TCL Computer Technology, and Tsinghua Tongfang--represent about 60 percent of the PCs sold in China.

If you get Microsoft FrontPage version 2002, Microsoft Publisher version 2002, or Publisher Deluxe 2002 from a participating retail store between now and January 12, 2002, you can receive a free Philips XS ToUcam Webcam.

A growing grudge match between archrivals Microsoft Corp. and AOL Time Warner has spilled over into the cable arena, as each company jockeys to ensure AT&T Broadband doesn't end up in the other's hands. Microsoft essentially hedged its bets Monday, participating in two of the three takeover bids made for the No. 1 U.S. cable company, sources familiar with the situation said.

The Seattle-based software giant also told AT&T Corp. it would infuse an additional $4 billion to $5 billion into its broadband unit if the telecommunications giant decides to keep it independent, sources said.