Terms of the deal would require Microsoft to donate software, recycled laptops and desktop computers, and other services to students in grades K-12 who attend public schools where 70 percent or more pupils are eligible for free or reduced-price lunches. One expert retained by the plaintiffs said the deal could impact nearly half a million teachers, and 7 million students in 14,000 schools.

The software packages, including 400,000 units of Microsoft's new Office XP program, are valued at $900 million by the company, although others peg their price tag even higher. The one million refurbished laptops and desktop computers to be donated to schools are worth between $500 and $600 apiece, one source said. The firm would also set aside as much as $90 million for teacher training and establish a foundation to dispense a possible $250 million in grants. A federal judge would retain authority over the agreement for five years.

Microsoft did not return calls for comment this morning.

Lawyers connected to the lawsuits said the unusual settlement is aimed at avoiding minimal payouts to thousands of consumers, who typically receive less than $10 in cash or coupons to purchase related products in such cases. Instead, the lawyers said, they wanted to make a bigger splash.

Not all of the various plaintiffs' attorneys have expressed pleasure with the deal. Some have argued in letters and conversations that the gift of Microsoft products will only make consumers more dependent on the world's monopoly operating system, Windows. Others, particularly from states such as California, have complained that they had too little say in the terms and that their clients, the consumers, do not benefit from it.