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AFP – Internet security researchers on Thursday warned that hackers have caught on to a “critical” flaw that lets them control traffic on the Internet.

AP – Microsoft’s CEO defended the software maker’s decision to invest heavily in its unprofitable online business, but shed little light Thursday on specific steps it will take to challenge Google in the wake of the failed bid to buy Yahoo.

PC World – The head of the new open-network initiative at Verizon Wireless sees the carrier’s traditional business following the open…

CNET – REDMOND, Wash.—Microsoft CFO Christopher Liddell said that Yahoo was a “declining asset” and said the chances of a full-on acquisition were now “negligible.”

NewsFactor – Apple has been boosting sales of Macs with its Mac OS X operating system—seemingly at Microsoft’s expense, as more PC users turn up their noses at Microsoft’s Windows Vista. Apple also has had great success with its iPhone, but now that Apple is taking flak because of problems with its MobileMe service, an admiring Microsoft appears ready to go after some of Apple’s revenue.

PC World – The latest beta of Yahoo’s hybrid e-mail client enables offline access to Web-based and traditional messaging systems.

AFP – Microsoft is shaking up management of its online division and strengthening its tie to Facebook in the aftermath of a failed bid to buy Yahoo to bolster its lagging Internet business.

PC World – Microsoft continues a shopping spree to bolster SQL Server by purchasing data-warehouse appliance vendor DATAllegro.

AP – “Wallace & Gromit” are going on a new adventure.

Reuters – Chief Executive Steve
Ballmer on Thursday defended Microsoft Corp’s need to make
heavy investments in its Internet businesses but said the
company was “done,” for now, with pursuing Yahoo Inc.