On Bloomberg (the URL will change), [link|http://quote.bloomberg.com/fgcgi.cgi?ptitle=Top%20Financial%20News&s1=blk&tp=ad_topright_topfin&T=markets_bfgcgi_content99.ht&s2=ad_right1_topfin&bt=ad_position1_topfin&middle=ad_frame2_topfin&s=AO30tZhTTTWljcm9z|here].

Washington, Aug. 17 (Bloomberg) -- A U.S. appeals court rejected Microsoft Corp.'s request to delay remedy hearings in its antitrust battle with the government until the Supreme Court decides whether it will review the case.

Seven judges of the U.S. Court of Appeals for the D.C. Circuit said they would send the case back to a trial court in seven days. Microsoft failed to show it would suffer ``any substantial harm'' if remedy hearings resumed while it seeks Supreme Court review, the appeals court said.

The action frees the government to ask a trial judge to order changes in Windows XP, the latest version of Microsoft's operating system that powers 95 percent of the world's personal computers. Microsoft plans to begin selling XP on Oct. 25.

Microsoft shares fell $2.02 to $62.60 in midmorning trading.

[...]

State antitrust enforcers have suggested they are likely to seek changes in XP, which they contend is designed to perpetuate Microsoft's monopoly for personal computer operating software. Besides Internet Explorer, Windows includes programs that enable users to listen to music, view video, edit photos and make phone calls via the Internet.

While computer makers are free to install other software such as RealNetworks Inc.'s RealPlayer that compete with the Windows Media Player, they can't remove any XP feature except links to Internet Explorer.

Microsoft has said the appeals court decision only applies to Internet Explorer, not any other technology in Windows. Antitrust enforcers are likely to challenge that assertion.

It looks like MS has some troubles ahead... :-)

Cheers,
Scott.