Microsoft, Yahoo connect

Users of Microsoft and Yahoo`s instant messenger (IM) will be able to chat to each other across networks from today, reports MSNBC.

In terms of a deal concluded nine months ago, the two companies are creating the world`s largest consumer IM community, with nearly 350 million accounts.

Until now, IM software has suffered from a lack of interoperability between systems. Yahoo says the interoperability with Microsoft is an unprecedented technical achievement that is expected to grow demand for IM globally.

Microsoft is targeting iPod accessory makers for its rival portable media player, to be officially known as Zune.

Dailytech says Microsoft has been in direct contact with iPod accessory manufacturers to score licensing deals for its player.

Reports say Microsoft has offered to lower licensing costs compared to Apple`s "Made for iPod" programme, with the aim of producing just as many accessories for Zune as there are available for iPods.

Microsoft has introduced new software that turns older PCs into more modern and secure systems, although with limited capability, as part of its Software Assurance licensing programme, reports ZDNet.

Windows Fundamentals for Legacy PCs is designed as a stopgap measure for companies with older Windows PCs that they aren`t ready to replace and that can`t be easily upgraded to Windows XP.

Windows Fundamentals will gives older PCs some of the security benefits of XP, but turns the machines into thin clients that are able to run only a few programs locally, with most software needing to run remotely from a server.