That’s the latest on the new unit aimed at young people and their social networking ways.

Once again, Microsoft had taken aim at snatching a bite out of Apple’s “coolness” factor by attempting to create a low-cost phone that would appeal to the young and the young at heart.

Most reviews of the phone had been lukewarm at best. Despite having a 5 megapixel camera for still shots, the unit couldn’t play web videos (a social networking must for those YouTube clips embedded in posts).

The phone also lacked things like a calendar, the ability to upload photos and video to Twitter, and a universal e-mail in-box.

And this was Microsoft’s stab at a social networking tool? No wonder the company’s in the doldrums with consumers.

Microsoft is reportedly going to anchor its future mobile efforts on Windows Phone 7, the overhaul of its ailing and much maligned Windows Mobile operating system (probably the only Microsoft product less popular than Vista) that is due out on phones later this year.

Unlike Vista, which 80% of businesses skipped entirely, most companies are gearing up for a Windows 7 upgrade. About 72% of organizations plan to switch to the new OS, according to a recent ComputerWorld survey of 285 IT pros.

And they plan on doing it sooner rather than later:

• 33% of those who plan to upgrade have already started the transition
• 37% will begin with six months to a year, and
• 16% will start upgrading within one or two years.

Why are businesses eager to upgrade? Most of them skipped Vista and are ready to replace the aging XP. That was the reason cited by 64% of respondents.

Other benefits cited by IT pros:

• increased security
• compatibility with older software through Win 7’s “Windows XP Mode,” and
• new features that give users easier remote access.

Despite Win 7’s popularity, especially compared to that of Vista, not all businesses are ready to start upgrading — 40% of the survey respondents plan to hang on to XP until Microsoft stops supporting it in April 2014.

One big obstacle to upgrades: hardware compatibility. Many businesses use machines that are fine when running XP, but can’t handle Win 7’s requirements.

If you’re holding off on upgrading, experts recommend cleaning the machines’ registries, deleting unnecessary software and considering smaller hardware upgrades (such as adding RAM) to keep the machines in good shape for the next four years.

If your organization is upgrading, make sure you:

• review your licensing agreements, and
• check compatibility with existing systems and applications (try Microsoft’s free Upgrade Advisor).

Is your business upgrading to Win 7? When? Let us know in the comments section below.

A lawsuit was filed two years ago challenging Microsoft’s “downgrade” restrictions. Essentially, if folks want XP on a new machine, they have to buy a PC with Vista (or now, Windows 7) installed, and then then downgrade to XP Professional.

Emma Alvarado took the company to court, claiming it was using unfair business practices.

But a federal judge has tossed the case, ComputerWorld reports. The reason: Microsoft wasn’t making any money from the practice.

The downgrade rights allow a user to transfer a license from a newer OS to the older one — they don’t need to buy a new license.

Computer manufacturers — not Microsoft — often charge a fee for PCs that are downgraded before they’re sold. (Alvarado paid Lenovo $59.25 to get XP.)

Assuming this is the end of the legal challenges, Microsoft will continue letting users downgrade under the same rules until April 2011.

The update will be able to detect if the activation is valid. If it’s not, that little tidbit of information will be transmitted to Microsoft.

And then the annoying reminders and altered Windows desktop begins.

According to a post on the “Genuine Windows Blog” by Joe Williams, once the update detects a known hack, “the desktop wallpaper will be switched to a plain desktop (all of the customer’s desktop icons, gadgets, or pinned applications stay in place). Periodic reminders and a persistent desktop watermark act as further alerts to the customer.”

In other words: Ugly desktop and persistent pop ups will annoy owners of hacked software into relenting and paying up for an authorized version of the operating system.

The update’s scheduled to post to the Microsoft download site on Feb. 17. You’ve been warned.

It’s free.

But that doesn’t mean it won’t cost you anything. In truth, IT may need to do some leg work before users can try out a version of Win 7.

The trick: Delete one tiny file.

Woody Leonard, editor of the Windows Secrets newsletter, has published a step-by-step set of instructions to walk users through the process of installing Win 7.

He found that by deleting one small text file from the installation DVD, users can pick any of five editions of the software.

All you need to do is delete the “EI.cfg” file on the installation disk. It’s not as easy as it sounds.

The DVD has to be transformed  into an .iso file. To do that, you’ll need a pair of CD/DVD tools, including gBurner System’s gBurner and ISO Recorder 3.1.

A Microsoft support forum’s been inundated with complaints from folks trying to upgrade to Win 7. The problem being reported:

“When attempting to upgrade from Windows Vista to Windows 7 the upgrade attempt may fail with the message ‘This version of Windows could not be installed, Your previous version of Windows has been restored, and you can continue to use it.’ However, the next reboot of the machine will launch the upgrade process again only to fail with the same message.”

The problems users were reporting didn’t seem to be confined to one particular scenario — other than trying to upgrade from Vista to Windows 7.

Some folks having the problem had purchased a Windows 7 upgrade electronically from Microsoft’s online store, while others downloaded the upgrade from Digital River, the Minneapolis-based company that distributes Microsoft’s $29.99 upgrade offer to college students.

Still others suffering the problem bought their copy of the new operating system at a retail store.

A similar problem affected Vista users back in February, 2008, when they were prepping their systems to install the Vista Service Pack 1 (SP1). XP users were also afflicted a few months later when they tried to install an upgrade to SP3.

The difficulty bodes ill for the much-anticipated Windows 7, which was enjoying a somewhat positive reception, primarily because it wasn’t Vista. This glitch may prompt flashbacks for many Microsoft users contemplating an upgrade and wary of past incidents.

To read about the problems, visit the Microsoft support forum here.

Well, it’s finally arrived. Delivery week for Windows 7, Microsoft’s new operating system, and crunch time for many IT pros contemplating an upgrade from their beloved XP version.

So will you switch or keep fighting the pressure?The choice isn’t an easy one.

We’ve looked at the advice out there and recommend asking yourself  these five questions before you take the leap:

1. Do my users need more speed? By most accounts, Win7 outruns both XP SP3 and Vista SP2. But remember: This is only the case if you run the 64-bit version of Win7. For many folks, this will mean new hardware.
2. Can we afford new hardware? The pros are not recommending that you upgrade to Win7 on existing hardware.  Microsoft doesn’t directly support upgrading on old systems, and recommends a fresh installation be made on new units. Easy for them to say. Tough for you to pay for, we’ll bet.
3. How long will it take to upgrade old systems? If you do decide to upgrade users’ old hardware, you’ll need to plan on about two hours per unit to complete the process. Be warned: Many apps could need post-upgrade adjustments, up to and including software re-installation.
4. Will my old hardware be compatible? It depends. Check out vendor Web sites to see if Win7 drivers are available. We’ve heard that most Vista drivers can be used successfully in place of Win 7 drivers, but don’t take anybody’s word for it. Test, test, test.
5. Do I have the space to perform an in-place upgrade? Win 7 also needs at least 5GB of extra space to perform an in-place upgrade from XP. That space is only used temporarily, but you’ll need it for the install. Have you got it?

So what if you make the decision to migrate your users to Win7, but find they will still need XP from time to time? Is there any turning back?

There is, but it’ll cost you. XP can be run on Win 7 in a virtual machine, but only if you’ve got the 64-bit Professional version or better. You’ll also need a V/VT-compatible CPU in your machine, of course,  and about an extra gig of memory to run the XP session.

And remember: When running XP in a virtual environment, it has to be secured separately, as if it were running solo.

Unless you really enjoy watching how hard and fast the mighty have fallen, you probably don’t want to subject yourself to the most recent marketing ploys of the software giant.

We’re talking, of course, about the hysterically stupid and amateurish videos the company’s put together and posted on YouTube in hopes of igniting a groundswell of “Windows 7 Launch Parties.”

The videos have gone viral on the Web, but not in a good way. At least, not in the way Microsoft is sure to have intended.

Personally, I was so embarrassed for the company after watching just a few minutes of one of the most recent videos (click here if you dare) I couldn’t continue. It takes an awful lot for me to feel sorry for a multi-billion dollar company, but these videos managed.

The scene: A multi-cultural, multi-generational gaggle of four friends gather in a kitchen to discuss how much fun and how relaxing it was to throw a fete for their nearest and dearest in order to share their excitement over Windows 7. (As one co-worker asked me, “Why would these four people ever be in a room together?” Good point.)

The words “easy” and “fun” and “relaxed” are peppered throughout the video. And of course, the Gang of Four laugh a lot — to give us the idea that they had so much fun at their launch parties they’re still laughing.

You’ll be laughing too, but not in a good way.

It’s “totally informal” and you’ve got lots of choices, we’re told over and over and over and over again. “It’s all up to you,” the vivacious actors repeat, just in case you thought Microsoft was going to hold a gun to your head unless you gave guests the hard sell.

There’s an even more tedious video of some nursing home residents editing their photos at a “party” here — and this one has bonus Japanese subtitles and the lead actor pronounces “voila” more like “walaa.”

Which leaves us wondering who the target audience for these videos might be. Old folks who don’t know any better and need to find an excuse other than their birthday for a party?

In the end, what’s really striking is how amateurish and dull these videos are. Does Microsoft really think people will rush right out for balloons and confetti to usher in their latest OS? Do they really think their users are such rubes they’ll actually be seduced by these sad little films?

The general consensus: It’s better than Vista — but might not be worth upgrading from XP.

The pros of switching:

1. Improved search features – Windows 7 introduces new search filters and a preview pane to make it easier for users to find exactly what they want. Also, new “Jump Lists” let them take a glance at open applications and folders.
2. Compatability with older software – Windows 7 should support all applications that worked on XP, but just in case, Microsoft has designed a virtual environment called XP Mode. Tailored for small and mid-sized businesses, it ensures that users will still be able to run older programs without problems.
3. No more UAC – The new OS doesn’t bombard users with annoying User Account Control (UAC) notifications, like Vista. Notifications can be turned off altogether without losing system protections. The OS also adds new security features, like data encryption for portable drives and gives IT more control over what applications users intall and run.
4. Better support for new hardware – Naturally, Windows 7 is designed to take better advantage of hardware advances than the eight-year-old XP. For example, the new OS will be able to handle up to 192 GB of RAM, compared to 4 GB for the 32-bit version of XP. Not that anyone needs that right now, but Windows 7 seems built with the future in mind.
5. Eye candy – The OS adds new themes and customization, and let users rotate background images and screen savers. Also, it has a clean, modern look similar to that of Mac’s OS X Leopard.

And the cons:

1. Speed leaves more to be desired – Some users have complained that Windows 7 isn’t any faster than older versions. And, as with Vista, they say many features need to be turned off to improve speed.
2. Too many editions – With multiple versions such as a Starter, Professional, Enterprise and Ultimate Editions (in addition to Home Basic and Home Premium), it can be tough to figure out which is right for your users.
3. Learning curve – Though the interface is similar to Vista, it might take some getting used to for people who’ve been using XP for eight years.
4. Upgrading won’t be easy – Upgrading from XP requires a clean install — in other words, you have to back up everything and install Windows 7 to a clean hard drive. Microsoft’s best solution: Get Vista and upgrade to the new OS from that.

Are you one of the early adopters who has tried the Windows 7 release candidate? Let us know what you think of it in the comments section below.

Most of these laptops came loaded with Windows Vista Home Basic operating system, which doesn’t include a free upgrade to Windows 7 in the U.S.

The folks who shelled out about $300 for these machines will have to come up with an additional $120 to get Windows 7 and get rid of the much-maligned Vista.

Microsoft has also published its “upgrade” paths — the rules of the road for installing Windows 7.  The software company won’t support upgrade from:

• Windows 95, Windows 98, Windows Millennium Edition, Windows XP, Windows Vista® RTM, Windows Vista Starter, Windows 7 M3, Windows 7 Beta, Windows 7 RC, or Windows 7 IDS
• Windows NT® Server 4.0, Windows 2000 Server, Windows Server® 2003, Windows Server 2008, or Windows Server 2008 R2

To download the full, four-page “Windows 7 Upgrade Path” document, visit here.