The prime risk I see about forcibly removing the browser from Microsoft is that suddenly Microsoft has no reason to pursue a browser-centric Internet. So what will they do? They'll marginalize it. They'll find something else on the 'net, buyt it up, make it their's, hype it up and do their utmost to elbow (amd knee and groin) the HTTP protocol into the annals of dusty history.
It is noble to want strong, healthy competitors to Microsoft, but aiming for that should not be the aim of the Remedy. Its purpose is a punishment for past mis-deeds.
So the remedy needs to divide Microsoft into three, not two: 1. The Browser (and only the browser), as already mentioned. 2. The OS. 3. Everything Else. This must include Office. All of it. Anything else that can be potentially argued one way or the other - the Media Player is the obvious example, but there are others - Microsoft must make a choice; if it is an OS component, it cannot be sold in stores, offered for download, or developed for any other OS - but if it is not, then it must be removed from all OS installation images and the Applications company can do with it as they see fit (including licensing it back to the OS company). I wouldn't put any other restrictions on the company other than the fact that collusion for the purposes of destroying the HTTP/HTML market is also forbidden (how, I'm not sure). Oh, and I would forbid certain current Senior Management of Microsoft to be in the management of either BrowserCo or ApplicationsCo.
This would have the goal of making Microsoft endure a punishment of having its products taken away from it because it has been using them to maintain a monopoly. Or, to put it another way, they have been using a monopoly in one product (the OS) to build a monopoly in another product (the browser), so we will take away all products except their existing monopoly so they can't do that anymore.
Wade.