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Article #717 (730 is last):
From: aa789@cleveland.Freenet.Edu (Bruce D. Nelson)
Newsgroups: freenet.sci.comp.atari.mags
Subject: ST Report: 16-Oct-98 #1434
Reply-To: aa789@cleveland.Freenet.Edu (Bruce D. Nelson)
Posted-By: xx004 (Atari SIG)
Date: Sat Oct 17 18:58:43 1998



                          [Silicon Times Report]
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                        (Since 1987 - Our 11th Year)

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 October 16, 1998                                                  No.1434


                Silicon Times Report International Magazine
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- Gov't Evidence/Apple & Sun - NEW LINKS LS 1999     - Apple Turnaround
- REDFISH Abound!            - WEB Patents Confusing - Corel Gallery
                                                     Review
- MS Subpoenas Goodin        - Artist Craft Factory  - AMD's NEW K7 Chip
                             Review
- Hasbro Interactive         - Color Game Boy        - NEW Diamond Back
H.E.D.Z.



                     HAYES Declares Bankruptcy - AGAIN
                      Apple Posts $106 Million Profit
                           Judge Delays MS Trial





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  From the Editor's Desk...

  Well it looks like Florida is in for it now…. Jeb Bush (R-running for
  Governor) and his buddy Crist (R-running for senate) are into sleaze
  campaign ads. Tillie Fowler (R) was "backstabbingly" disappointing.
  This is just what the doctor ordered as far as I am concerned. My only
  hope is that Florida's voters see through this claptrap and realize
  that Bush and the Republican Party are using Florida as a stepping
  stone for Jeb Bush's career. Bush could care less about Florida's
  natural resources going down the drain to developers of new homes,
  condos and business centers. Both Bush and Crist are very busy trying
  to drag down their Democratic opponents with nothing but bold faced
  lies and shocking innuendo. This is the crux of the matter…. If these
  two clowns are ready to lay this sort of garbage on the Florida voters
  now instead of telling the voters exactly what they plan to do to
  improve the education system in Florida, help for the elderly,
  preservation of the natural resources, and reduction in crime…. I can
  only imagine what they'll do to us if they're ever in office.

  Florida Lt. Gov. Buddy MacKay (D-Gov candidate) is the only way and
  Sen. Bob Graham (D-encumbant) is all for Florida.



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              Judge Denies Microsoft Access To Netscape Tapes

 A federal judge has denied a bid by Microsoft Corp. to get confidential
 tapes of potentially embarrassing interviews that executives of Netscape
 Communications Corp. gave to authors of a forthcoming book. Microsoft,
 which also was separately seeking documents from an online journalist in
 another case, argued it needed the tapes, especially one of Netscape
 President James Barksdale, to prepare for its epic antitrust battle with
 the U.S. Department of Justice. The trial gets underway Oct. 15. The
 Justice Department brought suit against Microsoft in May, charging it
 violated antitrust laws by unfairly using its monopoly in software for
 personal computers. The trial focuses in particular on Microsoft's
 allegedly unfair competition with Netscape, a pioneer in browsers for
 searching the Internet.

        Barksdale is set to testify for the government in the trial.

 The forthcoming book, "Competing on Internet Time: Lessons from Netscape
 and Its Battle with Microsoft," to be published next week, was made
 available to both Microsoft and Netscape. In it, Barksdale reportedly
 makes some embarrassing admissions about management and planning
 mistakes. Microsoft attorney Thomas Sartory said as he pleaded for the
 tapes' release that the interviews were important because Barksdale was
 "encouraged to be forthcoming, frank and truthful and he hadn't been
 prepared by lawyers." When Massachusetts Institute of Technology
 Professor Michael Cusumano and his co-author, Harvard University's David
 Yoffie, questioned Barksdale and 43 other Netscape executives in some 60
 to 70 hours of interviews, it was done with the promise of
 confidentiality.

 As part of their research, academics are often given in-depth access to
 corporations -- as long as they allow the company to review the
 manuscript before publication. Such nondisclosure agreements are intended
 to protect proprietary information. The professors refused to cooperate
 with Microsoft and instead accused the software company, which is based
 in Redmond, Wash., of being "on a fishing expedition." To surrender the
 tapes "would stifle or chill future opportunity for research as people
 would be less willing to participate," argued their lawyer, Jeffrey
 Swope. U.S. District Judge Richard Stearns agreed with the professors --
 for the most part.

 In a rare ruling from the bench, Stearns said Microsoft's arguments were
 based "on the fundamental premise that a witness in a civil case will lie
 ... As a general proposition, I don't think I can accept that as a
 judge." Stearns said the software giant had the resources to question all
 the witnesses involved and could get the information it sought without
 forcing the tapes' release. He did add, however, that if Microsoft could
 show it needed the tapes to test a witness's credibility, he would listen
 to the material in private and release it to the company if he deemed it
 would be helpful.

 In a separate development in pretrial maneuvering for another case,
 Microsoft subpoenaed documents from a San Francisco reporter for the
 on-line news service CNET. Microsoft served reporter Dan Goodin with a
 subpoena at his home on Tuesday, demanding documents he used to write a
 Sept. 23 story about Microsoft's attempts to compete with Sun
 Microsystems. In the story, which concerned a suit Sun has brought
 against Microsoft in San Jose, Calif., Goodin quoted internal Microsoft
 memos. CNET has retained a Los Angeles law firm to fight the subpoena.
 Goodin's story is available at www.news.com.

                        Judge Delays Microsoft Trial

 A federal judge agreed to delay the start of the government's antitrust
 trial wth Microsoft Corp. four days until Oct. 19. Addinng to the roster
 of witnesses form high-tech rivals, the government says it will call key
 executives from Apple Computer Co. and Sun Microsystems Inc. to testify
 against Microsoft at its antitrust trial. The government wants to use
 testimony from Apple and Sun to show that Microsoft engaged in a pattern
 of illegal activities, not just specifically to distribute more of its
 Internet browser software, but also generally to protect its lucrative
 Windows operating system.

 The decision to highlight Microsoft's behavior toward Apple and Sun
 illustrates the breadth of the case. Executives from Netscape
 Communications Corp., Intel Corp., America Online, IBM Corp. and Intuit
 Inc. previously agreed to testify against Microsoft. Both the government
 and the company updated their witnesses lists Thursday, and Microsoft
 changeed its mind again today. Microsoft said Thursday it will call its
 top sales executive and one of its software developers who attended a
 controversial June 1995 meeting with rival Netscape.

 But today, responding to the government's new witnesses from Apple and
 Sun, Microsoft said it will call Robert Muglia, a senior executive with
 Microsoft who works with Sun, and Chris Engstrom, an executive who
 handled some of Microsoft 's relations with Apple. The original antitrust
 lawsuit, filed in May, focused on Microsoft's fight to control the
 Internet browser market. But it also generally accused Microsoft of "a
 series of anticompetitive activities" to protect its dominant Windows
 operating system. Microsoft accused the government again Thursday of
 trying to broaden the case inappropriately. The company has said if the
 judge allows what it describes as new allegations, then he should delay
 the case at least six months.

 "These new witnesses are further proof that the government has lost faith
 in its original case and is rewriting its case at the last minute,"
 spokesman Mark Murray said. "The government's case has had more makeovers
 than Madonna." U.S. District Judge Thomas Penfield Jackson said
 previously that he would decide no earlier than today whether to limit
 the scope of the case. The judge didn't decide today whether to limit in
 advance the types of evidence the government can cite. But, he invited
 Microsoft to formally make its arguments in a future written motion.

 The government will call Sun's James Gosling, lead engineer for the Java
 programming language, which was designed to run on a variety of operating
 systems, not just Windows. Gosling likely will explain how Microsoft
 feared that widespread use of Java could replace Windows. Sun is suing
 Microsoft in an unrelated federal lawsuit in California, claiming that
 Microsoft is distributing a Windows-only version of Java in violation of
 their contract. A Sun lawyer, citing internal e-mail by Microsoft, said
 last week that Chairman Bill Gates was "scared to death" of Java.

 Court documents suggest the government will use testimony from Avie
 Tevanian, a vice president of programming at Apple, to show that
 Microsoft tried illegally to dissuade Apple from developing future
 Windows versions of its popular QuickTime software. QuickTime, which lets
 customers hear audio and watch video across the Internet, competes
 directly with Microsoft's own Netshow software.

                      Govt. To Use Apple, Sun Evidence

 The government says it will call key executives from Apple Computer Co.
 and Sun Microsystems Inc. to testify against Microsoft Corp. at its
 antitrust trial, adding to the roster of witnesses from high-tech rivals.
 The government wants to use testimony from Apple and Sun to show that
 Microsoft engaged in a pattern of illegal activities, not just
 specifically to distribute more of its Internet browser software, but
 also generally to protect its lucrative Windows operating system.

 The decision to highlight Microsoft's behavior toward Apple and Sun
 illustrates the breadth of the case. Executives from Netscape, Intel
 Corp., America Online, IBM Corp. and Intuit Inc. previously agreed to
 testify against Microsoft. Both the government and the company updated
 their witnesses lists Thursday. Microsoft said it will call its top sales
 executive and one of its software developers who attended a controversial
 June 1995 meeting with rival Netscape Communications Corp.

 The original antitrust lawsuit, filed in May, focused on Microsoft's
 fight to control the Internet browser market. But it also generally
 accused Microsoft of "a series of anticompetitive activities" to protect
 its dominant Windows operating system. Microsoft accused the government
 again Thursday of trying to broaden the case inappropriately. The company
 has said if the judge allows what it describes as new allegations, then
 he should delay the case at least six months.

 "These new witnesses are further proof that the government has lost faith
 in its original case and is rewriting its case at the last minute,"
 spokesman Mark Murray said. "The government's case has had more makeovers
 than Madonna." U.S. District Judge Thomas Penfield Jackson said
 previously that he would decide no earlier than today whether to limit
 the scope of the case. A hearing was scheduled in Washington.

 The trial was set to begin next week, although both sides agreed to ask
 the judge to delay the case an extra four days until Oct. 19. Jackson has
 not ruled on the request. The government will call Sun's James Gosling,
 lead engineer for the Java programming language, which was designed to
 run on a variety of operating systems, not just Windows. Gosling likely
 will explain how Microsoft feared that widespread use of Java could
 replace Windows.

 Sun is suing Microsoft in an unrelated federal lawsuit in California,
 claiming that Microsoft is distributing a Windows-only version of Java in
 violation of their contract. A Sun lawyer, citing internal e-mail by
 Microsoft, said last week that Chairman Bill Gates was "scared to death"
 of Java. Court documents suggest the government will use testimony from
 Avie Tevanian, a vice president of programming at Apple, to show that
 Microsoft tried illegally to dissuade Apple from developing future
 Windows versions of its popular QuickTime software.

 QuickTime, which lets customers hear audio and watch video across the
 Internet, competes directly with Microsoft's own Netshow software. Among
 Microsoft's new witnesses is Jeff Raikes, its head of worldwide sales,
 who will testify that consumers want an Internet browser integrated with
 Windows. Raikes is quoted in the government's lawsuit as saying,
 "Netscape pollution must be eradicated." Thomas Reardon is the software
 developer who attended a meeting at Netscape in which, the government
 contends, Microsoft offered to divide the browser market. The judge has
 limited each side to only a dozen witnesses.

                        Microsoft Subpoenas Reporter

 Microsoft Corp. is demanding that a news reporter return secret documents
 used for a story about the company, and is complaining in another lawsuit
 that other reporters were given other confidential paperwork. Microsoft
 subpoenaed Dan Goodin, a reporter for the Internet publication CNet, to
 demand that he return documents showing that Microsoft considered the
 threat from a rival's Java programming language, which doesn't require
 Windows, a "top priority."

 Goodin, in a Sept. 23 story, also quoted a Microsoft e-mail saying
 executives wanted to ensure that Java's potential to run software on a
 variety of operating systems "does not happen." Microsoft, which filed
 the subpoena last week, is demanding Goodin return the documents. The
 paperwork was part of the lawsuit filed by Sun Microsystems Inc., which
 created Java and is suing in California over claims that Microsoft is
 distributing a Windows-only version of Java.

 "We're not asking CNet where they got the materials," Microsoft spokesman
 Jim Cullinan said. "We're trying to make sure that, when we send
 information out in any of our lawsuits, it's protected." Goodin was away
 from his office in San Francisco until Monday and couldn't be reached for
 comment.

 In another lawsuit by rival Caldera Inc., Microsoft is complaining that
 other confidential documents were turned over to the media. Caldera is
 suing Microsoft in Utah for designing early Windows software that
 allegedly was deliberately incompatible with its DR-DOS operating system.

 In August, The Wall Street Journal and a new book, "The Microsoft File,"
 cited e-mail by Microsoft about an ominous warning that appeared whenever
 customers tried using an early version of Windows with DR-DOS. Microsoft
 lawyer James Jardine filed a motion under seal two weeks ago in federal
 court in Salt Lake City arguing that "local press stories" included
 "selective confidential information." No subpoenas were filed.

 The moves come on the heels of Microsoft's unsuccessful attempt to force
 two professors to hand over recordings and notes from interviews with
 executives at Netscape Communications Corp. A federal judge in Boston
 ruled Thursday that the professors don't have to turn over their
 materials, used to research an upcoming book about the fight between
 Microsoft and Netscape. The authors said the several hours of tapes,
 which include interviews with Netscape Chairman Jim Barksdale, company
 co-founder Marc Andreessen and more than 40 other employees, contained
 off-the-record comments, private conversations and admissions of
 strategic missteps.

                      Gates Defense Brings Some Hisses

 Microsoft Corp. chairman Bill Gates was hissed by some software customers
 this morning as he defended his firm's disputed practices in a
 last-minute public tour before the government's historic antitrust
 lawsuit against Microsoft goes to trial. Gates drew the mixed response
 after an industry analyst said many business software buyers feel they
 are forced to buy the latest Microsoft software at often high prices
 because of the way Microsoft designs its computer programs.

 Gates insisted most customers choose to upgrade because they want the new
 features. But some clearly disagreed among the thousands of corporate
 technology managers attending a computer symposium here. "People like me
 are forced to upgrade," said Bill Schrier, speaking after Gates' talk.
 Schrier manages the telecommunications network used by Seattle's city
 government.

 The issue is a key one in the government's case against Microsoft, which
 accuses the software giant of exploiting its monopoly in personal
 computer operating systems to crush software rivals, limiting consumer
 choice. Microsoft adamantly defends its practices, which it contends
 actually bring consumers greater choice of software features at low
 prices. In the latest accusations to emerge, The Wall Street Journal
 reported today that Apple - which struck an alliance with Microsoft last
 year - is privately upset about what its executives regard as Microsoft's
 attempts to stifle an Apple multimedia technology called QuickTime.

 The Journal, citing a previously undisclosed account that Apple supplied
 to state and federal investigators, said engineers at Compaq Computer
 Corp. were interested in licensing QuickTime in a deal that might have
 given Apple a $2 royalty for each Compaq machine using the software. But
 senior Compaq executives overruled subordinates for fear that Microsoft
 might object to a licensing arrangement, Apple executives said.

 Gates has been busily criss-crossing the nation this week, just before
 the Justice Department's case goes to trial, set for Monday. He appeared
 publicly Tuesday in St. Louis and on Monday in Bloomington, Ind., and in
 Denver. He was scheduled to appear in Charlotte, N.C. later today. In
 Florida, Gates defended his company's practice of continually integrating
 new software features into its Windows operating system. The Justice
 Department's case hinges on accusations that Microsoft, by giving away
 its own Internet browser in its latest operating program, has shut out
 Netscape, which pioneered the market. "We think it was a pretty obvious
 thing to get the browser capability built into the operating system,"
 Gates said. "We're very confident that kind of innovation is a great
 thing."

              U.S. House Finally Passes Digital Copyright Bill

 The U.S. House of Representatives approved landmark legislation updating
 copyright law for the digital age, sending the bill to the White House
 where President Bill Clinton is expected to sign it into law. The bill,
 approved by the Senate last week, implements the provisions of two
 international treaties adopted by the World Intellectual Property
 Organization in 1996 Software makers, movie studios, book publishers and
 other creators of copyrighted works pushed hard for the legislation,
 fearing that as their products increasingly became available on the
 Internet in digital form, pirates and criminals would be able to make and
 sell illegal copies easily.

 The legislation creates criminal penalties for anyone who circumvents
 high-technology anti-piracy protections, such as encryption, used to
 block illegal copying. The bill also forbids the manufacture, import,
 sale or distribution of devices or services used for circumvention. "The
 U.S. Congress today set an international standard for strong protection
 of creative works on the Internet that will spur the growth of electronic
 commerce and result in consumers benefiting from quicker and better
 online access to software, music, movies and other types of copyrighted
 works," said Robert Holleyman, president of the Business Software
 Alliance.

 A variety of exceptions were also included at the request of libraries,
 scientists, universities and some manufacturers of consumer electronic
 devices. They feared the law would prevent some kinds of research and
 would unfairly limit "fair use," a central principle of existing
 copyright law that allows copies to be made for educational and other
 non-commercial purposes.

 The exceptions include allowing circumvention if done for computer
 security testing, encryption research or limited kinds of computer
 software development. Internet surfers can also circumvent in limited
 ways to protect their privacy, and parents could circumvent to monitor
 their children's travels through cyberspace. The anti-circumvention laws
 will not go into effect for two years, until the Librarian of Congress,
 with advice from the Commerce Department, decides whether additional
 exceptions need to be made. Such exceptions would be reconsidered in a
 recurring process every three years, at which time new exceptions could
 also be created.

 The bill also defined broad freedom from liability for online and
 Internet service providers, like America Online, which otherwise might
 have been held financially liable for copyright infringement by one of
 their millions of customers. Under the bill, service providers will not
 be held liable for violations they do not know of but if notified by a
 copyright holder, must take rapid action to shut down the alleged
 violator. However, if the copyright holder fails to pursue the claim in
 court within a few weeks, the alleged violator has the right to demand
 that online access be restored.

 The procedure "establishes a rational process that will enable service
 providers to move quickly against copyright violations discovered on
 their systems without forcing them into the impossible task of monitoring
 millions of transmissions," said Tim Casey, chief technology counsel at
 MCI WorldCom Inc. Republican leaders in the House delayed a vote on the
 bill for several days, angered by a high-technology trade group that last
 week selected a former Democratic lawmaker as its new president. The
 Electronic Industries Alliance, which selected former Oklahoma Rep. Dave
 McCurdy, said it was puzzled by the delay, since members of the group
 have not been strong supporters of the legislation.

               Senator to Add Anti-porn Bill to Internet Act

 Sen. Dan Coats plans this week to offer a controversial amendment to the
 Internet Tax Freedom Act that would limit online pornography, a spokesman
 for Coats confirmed Monday. Coats, R-Ind., and other conservative
 lawmakers see the act, which the Senate is expected to vote on early in
 the week, as a logical vehicle for their measure, which would bar
 commercial Web sites from allowing children to access material deemed
 "harmful to minors." "We are definitely looking at an avenue to have
 something be germane and address the problem," spokesman Matt Smith said.
 Smith said the Coats amendment would probably be offered Tuesday morning.

            Veritas Agrees to Buy Seagate Unit for $1.6 Billion

 Veritas Software Corp. said late Monday it would buy the Network and
 Storage Management Group of Seagate Software, a unit of Seagate
 Technology Inc., for about $1.6 billion in stock, creating a powerhouse
 in the storage software industry. Veritas, a maker of software to protect
 data, will issue about 33 million of its common shares to form the new
 company, which will retain the Veritas Software name, employ about 2,300
 people and make a wide range of data storage management products. As the
 No. 1 maker of disk drives, Seagate has been looking for ways to cut
 costs and streamline its businesses amid a glut of disk drives.

            Penton Media Acquires Mecklermedia for $274 Million

 Business media company Penton Media said it has agreed to acquire
 Mecklermedia Corp. for about $274 million in a move that bolsters
 Penton's position on the Internet. Mecklermedia, whose products include
 the Internet World and ISPCON trade shows, owns several of the most
 prized Web site names, including Internet.com, on which it locates a
 network of 18 Web sites. Penton Media said it agreed to tender all
 outstanding shares of Mecklermedia's common stock for $29 each - a
 premium of about 44% over Mecklermedia's closing price yesterday of
 $20.19.

                         Hayes Declares Bankruptcy

 Modem maker Hayes Corp. has filed for Chapter 11 bankruptcy, saying it
 will continue to operate while it looks for additional funding. The
 Norcross, Georgia company had announced a restructuring in August, amid
 losses of $14.2 million. At the time, the company said it planned to put
 its Norcross facility up for sale and focus on cable modems and other
 high-speed devices. Hayes said today that it would continue to "resize"
 its operations, and narrow its focus on the broadband, RAS and
 Voice-over-IP markets. The company has secured interim financing and is
 negotiating for permanent financing. "We made the decision to seek the
 protection of the Bankruptcy Court in the belief that this action would
 provide the most viable means of achieving our key goals of refocusing
 our business strategy and operations," CEO Ron Howard said in a release.

              AltaVista Enhances Internet Search Capabilities

 Seeking to set itself apart in a crowded field, AltaVista has unveiled a
 new version of its Internet search guide that allows computer users to
 locate information with the help of a simple question-and-answer format
 unique among major Web sites. In addition, AltaVista (www.altavista.com)
 said it was now offering a range of new features, such as photo searches,
 a spell checker to increase the likelihood that a search will yield the
 intended results, and a family-friendly filter that can screen out
 potentially objectionable materials. AltaVista became a unit of Compaq
 Computer Corp. as part of that company's $8.4 billion acquisition of
 Digital Equipment in June.

 In bolstering its search capabilities, AltaVista is resisting the rush by
 rivals such as Yahoo! Inc., Excite Inc. and Lycos Corp. to diversify into
 catch-all Internet media sites. They are now catering to a range of other
 activities besides searching, like electronic mail, online chat, news and
 shopping. "Searching is still the No. 1 activity on the Internet," said
 Celia Francis, AltaVista's marketing director. "Pretty much of all of our
 competitors have abandoned" attempts to improve their Internet navigation
 features, seeing it as a commodity business and yielding the field to
 AltaVista, she said.

 To the contrary, the ever-expanding jungle of information available on
 the Web calls for ever more powerful search capabilities, Francis said.
 The new AltaVista indexes up to 140 million pages. "People still have a
 very hard time finding things on the Internet," she said. "Only with our
 new site have they begun to experience a sense of relief that what they
 find is relevant," she said, referring to focus groups of users who have
 tested the new AltaVista Internet guide.

 With its new search capabilities, Francis said Alta Vista has
 "leapfrogged" its rivals' capacity to provide quality Web searches. That
 includes Inktomi, another company largely focused on providing such
 search tools. By emphasizing its strength as a search tool, AltaVista,
 which ranks as the No. 10 most-visited Web site, is not conceding any
 ground to perhaps sexier Internet media rivals like Yahoo. AltaVista
 remains committed to becoming among the top three busiest sites on the
 Internet, Francis said. AltaVista now boasts a variety of intuitive
 approaches to searching the Web, instead of relying on highly structured
 searchers requiring logical connections like "and," "but" or "or," which
 often can produce convoluted or overwhelming results.

              Apple Set For First Annual Profit In Three Years

 Apple Computer Inc. is set to report its first profitable year since 1995
 and the computer maker plans to hold a briefing this week to tout the
 news and announce new products, industry analysts said. In an unusual
 move, co-founder and interim chief executive Steve Jobs will host a news
 conference Wednesday, while the stock market is open, to report
 fourth-quarter earnings, give an update on the hot-selling Mac computer
 and roll out the next version of the Macintosh operating system.

 Apple, like many West Coast technology companies, usually reports
 earnings after the close of the U.S. stock market. "I don't think they
 are doing this to report a loss," said Richard Doherty, director of
 Envisioneering Group, a consulting firm in Seaford, N.Y. "I think they
 are going to show that they have had the most successful computer launch
 in history." Apple has reported three consecutive profitable quarters,
 fueled largely by iMac, and analysts expect earnings of 49 cents a share
 for the latest quarter and $1.71 a share for its fiscal year ended last
 month, according to First Call, which tracks estimates.

 Apple's last profitable year was fiscal 1995, when it earned more than
 $400 million on sales of $11 billion. But the company that helped
 popularize the personal computer lost $1.8 billion its last two fiscal
 years as it struggled to cut costs and refocus its products while
 customers defected to competitors. Jobs, who has been back at Apple as
 interim CEO for just over a year, will take center stage at Flint Center,
 near the company's Cupertino, Calif., headquarters, a venue Apple has
 used before for special events.

 In May, Jobs surprised the crowd by introducing the iMac, Apple's first
 new consumer product in several years, at the center, where the original
 Macintosh machine was rolled out. Since it began shipping in August, the
 innovative iMac, priced at $1,299, has sold briskly. Apple shipped a
 record 150,000 units to retailers, many of whom sold out quickly and
 reordered. "I am expecting reasonably positive news out of these guys,"
 said Lou Mazzucchelli, an analyst with Gerard Klauer Mattison.

                 Apple Posts $106 Million Profit In Quarter

 Apple Computer Inc. said it earned $106 million in its fourth quarter as
 sales of its new iMac personal computer helped the company blow away
 analysts' forecasts and post its first annual profit in three years.
 Apple said it earned 68 cents a diluted share in the period, which ended
 Sept. 25 and was the fourth quarter of its fiscal year. A year earlier,
 the Cupertino, Calif.-based computer maker lost $161 million, or $1.26 a
 share.

 Its per-share income was well above the 49 cents a share forecast by Wall
 Street analysts surveyed by First Call Corp. but its stock price was down
 $1.31 at $37.44 a share on Nasdaq. "Apple grew faster than the industry
 this quarter for the first time in nearly five years," interim Chief
 Executive Steve Jobs said in a statement. "Apple is regaining operational
 excellence – exiting the quarter with only six days of inventory,
 surpassing Dell Computer's most recently reported level of eight days."
 Revenues for the quarter were even with last year at $1.6 billion, while
 gross margins widened to 27 percent from 20 percent a year earlier, Apple
 said. Unit shipments in the quarter rose 28 percent year-over-year, and
 ending inventory dropped to $78 million, or six days of inventory.

 For the full fiscal year, Apple posted net earnings of $309 million, or
 $2.10 a diluted share, compared with a net loss of $1.0 billion, or $8.29
 a share, the prior year. Revenue for the year fell to $5.9 billion from
 $7.1 billion. Apple's market share, which had dwindled to about 4 percent
 in past quarters, now appears to be bouncing back a bit, with the iMac
 computer luring first-time PC buyers. More than 40 percent of iMac buyers
 are new customers for Apple, according to a survey of almost 2,000 iMac
 buyers conducted by Audits & Surveys, Apple said.The findings show that
 29.4 percent of iMac buyers are first-time computer buyers, 12.5 percent
 are "converts" who own other brands of personal computers and the
 remaining 58.1 percent own a Macintosh, Apple said.

 The translucent iMac computer, which boasts a unique all-in-one design,
 has been the fastest-selling Mac ever introduced. Priced at $1,299, the
 computer is designed to make it easy for customers to get on the
 Internet.Apple also said on Wednesday it will add Best Buy Co. Inc.,
 which has 300 outlets, as a nationwide retailer beginning next month. The
 iMac already is available at CompUSA stores. Apple's first annual profit
 since fiscal 1995 caps a substantial recovery for Apple. In the past 12
 months, the company's stock has traded as low as $12.75 a share, but with
 company co-founder Jobs back at the helm -- albeit on a temporary basis
 -- and its iMac posting strong sales, its stock has traded as high as
 $43.75 recently.

                      Opposition to Net Privatization

 Fearing commercial interests may co-opt cyberspace, scores of educators,
 activists and computer professionals gathered Saturday to marshal forces
 in a battle against privatizing the Internet. The two-day meeting,
 organized by Computer Professionals for Social Responsibility, is aimed
 at bringing together dozens of organizations with a stake in cyberspace.
 "Like it or not, decisions are being made, strategies are being set up
 that will determine how we interact as a society, and it's not just a
 matter of getting government out of the way," said Harry Hochheiser,
 director-at-large for CPSR, based in Palo Alto, Calif.

 Among the topics at the two-day conference was a Clinton administration
 proposal that would largely hand over management of Internet addresses,
 or domain names, to a nonprofit corporation yet to be formed. The public
 has about a week to comment on the plan before a decision is made by the
 White House. Harvard Law School professor Lawrence Lessig, an expert in
 cyberspace law, criticized the plan.

 He said it places critical decisions about internet development in the
 hands of a commercially minded corporation with a potentially
 self-perpetuating board. Such an entity is unlikely to pay much heed to
 democratic values such as privacy, free speech and due process, he said.
 "If government doesn't protect those values, who will?" he said. Lessig
 also spoke of the broad challenges facing policy makers. "We're building
 the most significant jurisdiction since the Louisiana Purchase, but it's
 outside of the control of traditional Constitutional values," Lessig
 said.

                   Gartner Group Sees No Threat To Wintel

 Oct 13, 1998 (Tech Web - CMP via COMTEX) -- Although there will be huge
 changes in computing technologies in the next five years, the companies
 that pull the strings will be the same, according to Gartner Group, a
 research company based in Stamford, Conn. At Gartner Group's annual
 IT/Expo in Orlando, Fla., Monday, analysts said they projected the PC
 industry will see rapid growth in new markets and continue its "bigger,
 smarter, faster" trend.

 Gartner analysts said they predicted PC penetration will rise from 43
 percent of U.S. households today to 63 percent by 2002. The aggressive
 projections forecast rewritable DVD drives will compete with, and
 eventually supplant, VCRs for video recording, and children will shun
 Nintendo game consoles for technically superior PCs. According to
 Gartner, PC sales will more than double from 80 million in 1997 to nearly
 180 million units in 2002, fueled largely by demand from developing
 nations such as China, India, and Brazil.

 In a session on desktop PC trends, Dataquest analyst Martin Reynolds said
 PCs will soon no longer be measured in MHz, but in GHz, surpassing the
 2-GHz mark. Standard features of the PC of 2002, Reynolds said, will
 likely include a 30-gigabyte hard drive, 128 megabytes of RAM, a
 rewritable DVD drive, and 100-megabit-per-second Ethernet network
 adapters. Those specifications may seem like science fiction to today's
 desktop computer users, but reliance on Windows and Intel's processor
 architecture will be reality, according to Reynolds.

 "The industry is moving to a complete Intel architecture and Microsoft NT
 solution from server to client device," he said. Microsoft's Win CE
 mobile computing platform, code-named Jupiter, and Intel's StrongArm
 processors will make significant inroads in the handheld and PDA markets,
 he added. "There are no significant threats to the Intel or Microsoft
 desktop PC franchises through 2003," said Chris Goodhue, another PC
 analyst at Gartner. Goodhue added the Java-reliant network computer
 market, previously positioned as a viable alternative to Wintel, won't
 reach more than 1 million units per year and will thus remain a niche
 device.

 But despite Gartner Group's rosy outlook for the Wintel platform, the
 research company also warned about adopting new products too quickly. Win
 NT 5.0, scheduled to ship in mid-1999, won't be widely available until
 2000, Goodhue said, and he suggested IT managers wait six to nine months
 before deploying it. He also said it would be wise to wait until after
 Microsoft releases the first NT 5.0 service pack upgrade to fix bugs.

 Microsoft's goal of moving Windows users to NT won't happen as quickly as
 the company would like. "Plan on Windows 9.x being part of your
 administration requirements in 2002 and beyond," Goodhue said. Likewise,
 Intel's 64-bit Merced processor won't be adopted widely in desktop PCs
 before 2002, but will remain a server chip. Reynolds said mainframes will
 continue to have performance advantages over microprocessor-based servers
 through at least the next four to five years. The PC's continued growth
 will keep not only Intel and Microsoft healthy, but will also mean strong
 bottom lines for PC manufacturers such as IBM, Dell, Compaq, and
 Hewlett-Packard, the analysts said.

                 Y2K Computer Fix To Eat Up Budgets-Survey

 Company spending to avert computer breakdowns resulting from the Year
 2000 date change will consume a whopping 44 percent of information
 technology budgets in 1999, according to a survey. While corporate
 computer budgets are expected to stay relatively flat in 1998 vs. 1997,
 the portion spent on Year 2000 fixes will eat up 29 percent of the total
 this year, up from 5 percent in 1997, according to computer consultant
 Gartner Group Inc. The survey is the latest to suggest a corporate
 spending pullback has begun that will sap investments in new technology,
 slowing growth for many computer companies.

 Gartner Group Chief Executive Manny Fernandez said in a speech on Monday
 that Year 2000 spending will become the No. 1 technology priority for
 companies worldwide, beating out spending on nearly all other new
 computer technologies combined. "This year, 1998, that number is 29
 percent," Fernandez told about 10,000 people at the opening day of
 Gartner's annual Symposium/IT Expo 98 in Orlando, Fla., "Our latest
 forecast is that that percentage will soar to 44 percent of IT
 (information technology) budgets in 1999." The statistics are based on a
 survey of technology managers at 15,000 small, medium and large companies
 in 87 countries.

 Gartner has estimated the worldwide cost of preventing potential Year
 2000 computer failures will total $300 billion to $600 billion, with $150
 billion to $225 billion of that amount to be spent by U.S. companies
 alone. That's funding robbed from new technology that companies otherwise
 might have installed in the coming years. Projects that could be delayed
 or cut back include new software to link key business operations, larger
 data storage networks, new computer-based customer service phone centers
 and electronic mail systems, Fernandez said.

 Overall, computer systems account for an average of between 5 percent and
 8 percent of corporate budgets in the companies surveyed, depending on
 whether the business is an aggressive user of technology or not,
 according to Gartner. Gartner is the top information technology market
 research firm in the world, with more than 11,000 corporate clients. It
 has been a leading voice in popularizing the threat of Year 2000 computer
 failures.

 The Year 2000 crisis stems from a once-seemingly-innocent computer
 programming shortcut begun decades ago that used the last two digits of a
 year to substitute for the full year. A computer understands "69" to mean
 1969 and "98" to represent 1998. But "00" may be interpreted as 1900 in
 many computers, throwing off other calculations, unless the software is
 upgraded in time.

 Many experts say the danger is that computers unprepared for the
 millennium rollover will fail, potentially causing everything from
 traffic lights to electric power grids to fail, sparking widespread
 economic and social dislocation. Lou Marcoccio, a Gartner analyst and
 Year 2000 expert, said the number of companies initiating computer
 millennium fixes peaked last January, which explains the sharp jump in
 spending this year. He said further spending has resulted from a
 realization that the problem is not confined merely to older mainframe
 computers used to run large businesses, but extends to a variety of
 smaller computer hardware, software and so-called embedded systems.
 Embedded systems include refrigerators, car brakes and elevator circuits.







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 EDUPAGE STR Focus Keeping the users informed
  [Image]
                                       Edupage







 Contents

  U. Of Utah President Critiques Virtual
  Universities                             E-Commerce Growth Projections

  Web Patents Weave Confusion              PCs Break $500 Price Barrier

  No New Taxes On Net Transactions         Should The Net Be Privatized?

  Copyright Suit Over Music Downloading    Hayes Files Again For
  Device                                   Bankruptcy

  Honorary Subscriber: Frederick William   Merger Of Web Measurement
  Rueckheim                                Firms Will Smooth Out
                                           Differences

  OECD Reps Set Guidelines For Internet    Direct Mail Group Merges With
  Taxation                                 Web Marketers

  AMD's New Chip Is Not Off The Old
  (Intel) Block                            Hatching A High-Tech Incubator

  Amazon To Launch Book Sites In The       Audio Banner Ads From
  U.K.-Germany                             ValueClick

  IBM & RealNetworks To Offer
  Training/Presentation Products           Apple Turnaround

                                           Senate Approves Bill
  House Approves Y2K Bill                  Increasing High-Tech Worker
                                           Visas

  Journal Pioneers Online Commentary       Internet Provider Not Liable
                                           For Messages Of Its Customers

  Transforming The Network                 Library Of Congress Opens
                                           Collection Of Web Data

  Value-Added Content Is King              Most-Visited Web Sites



            U. OF UTAH PRESIDENT CRITIQUES VIRTUAL UNIVERSITIES

 In his inauguration speech, University of Utah president J. Bernard
 Machen warned the state's governor and other officials that no online
 curriculum could ever replace the kind of educational experience offered
 by bricks-and-mortar institutions. Utah Governor Mike Leavitt has been a
 leading proponent of the Western Governors University, a virtual
 institution. In his remarks, Machen said that "the use of technology can
 be an important part of the delivery of certain aspects of education,"
 but referred to WGU as an "experiment," that would be "most appropriate
 for the job-skills component of education." Speaking of his own
 institution, he said, "Let us not succumb to the temptation to force a
 college education to its lowest common denominator. The kind of education
 I am describing is not the cheapest, but it is the best." A spokeswoman
 for Governor Leavitt said that this "is not the first time that we have
 heard a kind of fearful, skeptical reaction from the higher-education
 community." (Chronicle of Higher Education 9 Oct 98)

                       E-COMMERCE GROWTH PROJECTIONS

 ActivMedia's fifth annual Real Numbers Behind Net Profits survey examined
 e-commerce activity in 17 industry sectors and found that overall,
 industry executives are anticipating a revenue growth rate of 63% this
 year, up from 58% in 1997. Not surprisingly, the top sector for growth is
 computer hardware and software. Other areas expecting big gains are real
 estate, publishing and information services, finance, and Internet
 services. The largest gains are projected by managers in
 business-to-business services, telecommunications and broadcast, travel,
 and in the distribution/transportation/wholesale sectors. (AlleyCat News
 Sep 98)

                        WEB PATENTS WEAVE CONFUSION

 A federal appellate court ruling in July confirming that computerized
 "business methods" can be patented has sparked a wave of patent
 applications that electronic commerce proponents fear will amount to
 "holdups in cyberspace." The July case involved a computerized
 mathematical formula for apportioning the administrative costs associated
 with a family of mutual funds, but by "claiming the computer as part of
 the invention, you can make things patentable that weren't patentable
 before," says a patent attorney in California. Skeptics say many of the
 new patents won't hold up in court, and will suffer the same fate as the
 1993 patent granted to Compton New Media, protecting a method for
 combining text, audio and video on a compact disk. That patent was
 revoked in 1994, after critics demonstrated the technology was already in
 common use. "Everyone is under the impression the Patent Office
 thoroughly investigates your claims," says a Forrester Research analyst.
 "They really don't." (Wall Street Journal 9 Oct 98)

                        PCs BREAK $500 PRICE BARRIER

 The San Francisco Chronicle reports that newly formed Emachines is
 introducing a fully equipped PC, including a monitor, for less than $500.
 The $499 eTower sports a 266 MHz Cyrix microprocessor, a 2.1 gigabyte
 hard drive, 32 megabytes of memory, a 56K modem, a CD-ROM drive and a
 14-inch monitor. The same machine can be purchased without the monitor
 for $399. "Five hundred dollars is the magic number for opening up the
 next wave of adopters in the home," says the company's CEO. Emachines is
 a joint venture of two Korean companies -- TriGem and Korean Data
 Systems. The company is planning to offer several other computers in the
 next year or so, including a 300 MHz eTower with monitor for $599, an
 ultralight notebook for under $2,000 and an entertainment device for
 playing games and watching DVD movies. (St. Petersburg Times 10 Oct 98)

                      NO NEW TAXES ON NET TRANSACTIONS

 With strong bipartisan support, including support from the Clinton
 Administration, the U.S. Senate has passed 92-2 a bill called the
 Internet Tax Freedom Act, which makes the Internet a tax-free zone for
 most transactions for the next three years. A conference committee will
 now resolve minor differences between this bill and one that has already
 been passed by the House. The main sponsor of the House bill, Christopher
 Cox (R.-Calif.), says it is based on the simple principle that
 information should not be taxed. (New York Times 9 Oct 98)

                       SHOULD THE NET BE PRIVATIZED?

 The organization called Computer Professionals for Social Responsibility
 has begun a battle against a Clinton Administration plan that would
 largely turn over management of Internet domain names to an
 as-yet-unformed nonprofit corporation. Harvard law professor Lawrence
 Lessig, a member of the group, ays the plan is flawed because it gives
 too much power to a commercially minded corporation with a potentially
 self-perpetuating board. Saying that such an entity is unlikely to be a
 strong enough watchdog for privacy, free speech, due process and other
 democratic values, Lessig asks: "If government doesn't protect those
 values, who will?" (AP 10 Oct 98)

                COPYRIGHT SUIT OVER MUSIC DOWNLOADING DEVICE

 The Recording Industry Association of America has asked a federal court
 to halt shipment of a device it says violates copyright laws by allowing
 music to be downloaded from the Net without paying any royalties. The
 device, made by the San Jose company Diamond Multimedia Systems Inc.,
 will cost $199 when it's released to retailers in November. (San Jose
 Mercury News 11 Oct 98)

                      HAYES FILES AGAIN FOR BANKRUPTCY

 The Hayes Corporation, which pioneered the modem market, has filed again
 for Chapter 11 bankruptcy, to buy time while the company restructures
 itself. The company has been struggling with slow sales, declining stock
 values, and a dispute with preferred shareholders. (Atlanta
 Journal-Constitution 10 Oct 98)

        MERGER OF WEB MEASUREMENT FIRMS WILL SMOOTH OUT DIFFERENCES

 New York-based Media Metrix and Atlanta-based Relevant Knowledge, two
 companies that provide advertisers with statistics on how people use the
 World Wide Web, and that have often provided vastly different ratings
 from each other and from the Web sites themselves, have agreed to merge.
 Neither has been profitable. Rich Lefurgy, head of an industry trade
 group, says: "It was very hard to understand why 10 of the top 25 sites
 rated by Media Metrix weren't on Relevant Knowledge's Top 25 list. By
 bringing together the two companies we will have more credible
 information." (New York Times 13 Oct 98)

               OECD REPS SET GUIDELINES FOR INTERNET TAXATION

 Government representatives attending an OECD (Organization for Economic
 Cooperation and Development) conference in Ottawa have agreed that
 business should take the lead in developing e-commerce and regulate
 itself within a framework of support provided by governments. The group
 also established an e-commerce tax scheme based on existing principles of
 taxation, recommending that no new taxes be imposed that would
 discriminate against electronic commerce, and suggesting that any
 taxation take place at the point of consumption. The group agreed that
 digitized products should not be treated as a good -- thus software would
 not be taxed on the value of the diskette it is stored on, but rather on
 the value of the content. "This is a big deal for Internet commerce,"
 says a Forrester Research analyst. "To set these proposals for Internet
 taxation is remarkable. It is one of the biggest issues facing Internet
 commerce." The OECD group plans to address issues like permanent presence
 -- for instance, whether the location of a server or Web site implies
 permanent presence for the purposes of taxation -- during the next year.
 (TechWeb 10 Oct 98)

                DIRECT MAIL GROUP MERGES WITH WEB MARKETERS

 The Direct Marketing Association is taking over the Association of
 Interactive Media, in an effort to adapt its bulk-mailing techniques to
 cyberspace. Many of DMA's 4,100 members currently restrict their
 activities to snail mail, but are eager to use the Internet to get their
 messages out. "They certainly have an interest in finding out how to do
 things effectively," says the president of DMA. "This acquisition is
 going to provide for a technology exchange between the two groups." The
 acquisition has alarmed some privacy advocates who shudder at the thought
 of unleashing the junk mail experts on the Internet. "The DMA's attitude
 is to spam the consumers until they scream, and that's not the way things
 are done in cyberspace," says the president of New Jersey-based
 Junkbusters Corp. "In cyberspace, the consumer finds the seller, not the
 other way around." (Wall Street Journal 12 Oct 98)

              AMD'S NEW CHIP IS NOT OFF THE OLD (INTEL) BLOCK

 Advanced Micro Devices will break new ground next year with a K7
 microprocessor that is not patterned after the industry-standard Pentium
 II. "The K7 is the greatest move away from the Intel architecture that
 AMD has ever attempted," says an analyst at SoundView Technology Group.
 "They're going down some unpaved ground here." The K7, aimed at the
 high-end computer market, will fit into the same slot as a Pentium II,
 but its interface is different, requiring specially designed motherboards
 and chipsets. Support from other chipset makers will be key to the K7's
 success, say industry experts, but "it's a chicken-and-egg situation,"
 says one analyst. If the K7 does well in the market, companies likely
 will support it -- but it is also dependent on that support to do well.
 (Investor's Business Daily 13 Oct 98)

                      HATCHING A HIGH-TECH INCUBATOR

 Thursday's opening of the Business Technology Center in Altadena, Calif.,
 marks the debut of the largest high-tech incubator in the state. The
 40,000-square-foot center will house between 30 and 50 start-up
 companies, mostly software and Internet firms, some of which are spinoffs
 from Caltech and the Jet Propulsion Lab in Pasadena. Incubators assist
 small businesses in developing business plans, identifying funding
 sources, and networking into the local business community. "We wanted to
 reinvigorate the high-tech industry, which had taken such a hit because
 of defense downsizing," says the manager of regional economic development
 for the L.A. County Community Development Commission. "The Business
 Technology Center lends itself to an emerging technology corridor from
 Cal Poly Pomona to the City of Hope Cancer Center in Duarte to Caltech to
 the Huntington Medical Research Institutes in Pasadena, then to the Jet
 Propulsion Laboratory and all the way out to the media gulch in Glendale
 and Burbank." (Los Angeles Times 12 Oct 98)

              AMAZON TO LAUNCH BOOK SITES IN THE U.K., GERMANY

 Amazon.com is poised to expand its Web presence, opening two new sites in
 the U.K. and Germany. Amazon's move comes on the heels of German media
 giant Bertelsmann's announcement that it will purchase 50% of the
 Internet sales unit of Barnes & Noble for $200 million.
 Barnesandnoble.com plans to sell foreign language books via Books Online,
 the online bookseller that Bertelsmann will launch next month in Germany,
 France, the U.K. and Benelux. Amazon has timed its European debut to
 preempt the opening of Books Online, and plans to extend to European
 customers the same discounting strategy that has proven so effective in
 its U.S. sales efforts. (Financial Times 12 Oct 98)

                      AUDIO BANNER ADS FROM VALUECLICK

 Online advertising firm ValueClick is now offering to place banner ads
 that play sound in a variety of formats, including Broadcast.com's,
 RealNetworks' and InterVU's. The ads will include small animated GIFs and
 a section that says, "Click here to listen." When users clicks on that
 banner, it will transport them to another site that checks for plug-ins
 and plays the audio. The ads could be suite effective, says a Jupiter
 Research analyst, because audio increases emotional reactions to ads:
 "The real challenge will be having publishers accept this form of
 advertising." Many users become annoyed by technically complex media
 gimmicks that slow their download times or cause other technical
 problems. (TechWeb 13 Oct 98)

        IBM & REALNETWORKS JTO OFFER TRAINING/PRESENTATION PRODUCTS

 In a joint venture of the two companies, IBM's Lotus Notes and Domino
 "groupware" products that allow a number of people to work together on
 the same documents will be combined with RealNetworks' RealSystem G2
 audio and video technology. The purpose of the venture is to produce a
 product that can be used by companies for presentation and training
 sessions. (New York times 13 Oct 98)

                              APPLE TURNAROUND

 Apple earned $106 million in its fourth quarter and has enjoyed its first
 profitable year since 1995. Apple cofounder and chief executive Steve
 Jobs said, "For today at least, we're going to stop and smell the roses."
 The company's success has been attributed largely to the popularity of
 its new consumer product, the $1,299 iMac promoted as a computer designed
 for easy access to the Internet. (New York Times 15 Oct 98)

                          HOUSE APPROVES Y2K BILL

 The U.S. House of Representative has voted 407-3 to authorize the
 president's Council on the Year 2000 Conversion to take control of
 computer systems of critical agencies if they're unlikely to be able to
 avert a crisis because of the Year 2000 software problem, in which old
 programs using 2-digit codes for years will be unable to do correct
 date-based calculations. The Senate has not yet voted on the measure. (AP
 13 Oct 98)

           SENATE APPROVES BILL INCREASING HIGH-TECH WORKER VISAS

 After blocking the legislation last week, the Senate approved a measure
 nearly doubling the number of visas issued to high-tech workers over the
 next three years. The bill was included as part of the omnibus spending
 package approved late Tuesday. The number of visas will increase from
 65,000 to 115,000 by 2001, after which it will drop to 65,000 again. The
 House approved the legislation, which has been a high priority for
 Silicon Valley executives, last month. (Wall Street Journal 14 Oct 98)

                     JOURNAL PIONEERS ONLINE COMMENTARY

 The British journal, BMJ, is testing a new kind of article review. The
 paper, "The Metamorphosis of Biomedical Journals," was authored by a
 professor of epidemiology at the University of Pittsburgh and has already
 been rejected for publication by The Journal of the American Medical
 Association, Nature Medicine and The New England Journal of Medicine.
 Visitors to the BMJ site ( http://www.bmj.com ) can read the paper, post
 their comments and read other's opinions about it. Based on those
 comments and the evaluation of traditional peer reviewers, BMJ will
 decide later this year whether to publish it in its print journal. "I
 don't believe in the conventional process of peer review," says author
 Ronald LaPorte. "This is the model of how scholarly publishing should be
 done." Other scholars are not so sure: "Raw articles are not worth
 people's attention," says a professor of psychology who operates a Web
 site on cognitive science. "They're not worth sending out to gazillions
 of people. This is no way to run a journal." (Chronicle of Higher
 Education 16 Oct 98)

         INTERNET PROVIDER NOT LIABLE FOR MESSAGES OF ITS CUSTOMERS

 An appeals court in Florida has ruled against a woman who sued America
 Online because one of its customers, a convicted sex offender, used an
 AOL chat group to try to sell the woman's 11-year-old son a pornographic
 video. The court said that federal law protects online services from
 being held liable for the messages transmitted by their members sell the
 videotape of the boy. The defeated lawsuit, which is being appealed to
 the Supreme Court, tried to characterize America Online as "a home
 shopping network for pedophiles and child pornographers." (AP/Washington
 Post 15 Oct 98)

                      TRANSFORMING THE NETWORK MARKET

 Piyush Patel, senior VP of engineering at Cabletron Systems, predicts an
 almost-exclusively-data network market in just a few years: "If you look
 at the last 10 years and what's happened in the network market, the
 Internet is growing at 1,000% per year and voice is growing at about 10%
 a year. I think six years from now, the voice market will be 2% of the
 network and the Internet will be 98%." (Investor's Business Daily 15 Oct
 98)

              LIBRARY OF CONGRESS OPENS COLLECTION OF WEB DATA

 As part of its collection, Library of Congress has created 44 tapes that
 contain in two terabytes (equivalent in total to about 2,000 copies of
 the Encyclopedia Britannica) the entire contents of the World Wide Web in
 the months of January and February 1997. Librarian Robert Zich says:
 "Every week 1 percent of all Web pages are removed or changed. But some
 of them are there just as they were in 1994 when we first started.'' The
 tapes can be seen at http://www.alexa.com (AP 13 Oct 98)

                        VALUE-ADDED CONTENT IS KING

 Gartner Group analyst David Smith predicts that by 2003, the Internet
 will become the predominant mechanism for conducting business -- either
 to consumers or between businesses. "The Internet was an earthquake, and
 now we're dealing with the aftershocks. We are at the beginning of the
 effect of the Internet on society and electronic commerce." And while he
 declares the "content is king" idea dead, he says that the key to success
 on the Web will be value-added content, for which consumers will pay
 subscriptions or pay-per-view fees. In addition, Smith predicts that by
 2004, most corporations will start becoming enterprise service providers,
 and will begin managing Internet access as an integral part of the
 company networking strategy with both Intranet and extranet business
 services. (TechWeb 15 Oct 98)

                           MOST-VISITED WEB SITES

 According to the Media Matrix market research company, here are the
 most-visited Web sites (and number of visitors shown in millions) for
 August, the last month tabulated: AOL, 57.8; Yahoo, 27.3; Microsoft,
 26.4; Netscape, 18.7; GeoCities, 16.7; Excite, 14.9; Infoseek, 12.3;
 Lycos, 11.8; AltaVista, 9.6; MSN, 9.0. (Investor's Business Daily 14 Oct
 98)





 NEW!



                       [BITSBYTES.GIF (64527 bytes)]



 by R. F. Mariano

 Depthsounders, Radar, GPS etc., whatever became of Dead Reckoning??
 People began to realize that, in addition to knowing how to use DR, the
 electronic age was far superior and infinitely more accurate.  Having
 been on the water for well over twenty years, I find myself in a bit of a
 quandary.  When I was a young man, I was taught by one of the best. My
 uncle.  He held a Master's License and I might add, knew his stuff.   As
 I would operate the boat (a 68 foot party fishing boat) he would be in
 the wheelhouse with me and was always watching me carefully. He would
 make certain that every mistake brought a cuff in the back of the neck.
 Believe me, I learned quickly and never forgot my lessons.  When I say
 dead reckoning, I mean using course, time and speed. In those days, one
 used the tachometer and called the rpm speed.  Everyone who cares to
 operate a boat, in my humble opinion, should know how to use DR and only
 then should they learn how to use electronic navigational aids.  NOT the
 other way 'round.   It will, in the long run, make the difference between
 the utmost fun or heartbreaking tragedy.

 With that said, I must admit I am an electronics junkie.  I firmly
 believe in the use of such in a boat.  From a strong performing VHF to an
 accurate Depth Sounder that'll put you on the right bottom and show you
 the fish.  The GPSMAP 235 is quite the device.  In the next few weeks we
 shall put this puppy through its paces.   Both in the deep going after
 Grouper and on the flats chasing Speckled Trout and Red Drum. In either
 case, you'll be right there with us.

 [garmin.gif (9279 bytes)]

 The GPSMAP 235 Sounder really offers three products in one: a GPS
 receiver, a chartplotter, and a fishfinder. You won't need to duplicate
 technology to enjoy your sport to its fullest.

                        [gpsmap235.jpg (8877 bytes)]

 This unit features dual-frequency operation that provides a clear image
 in both deep and shallow water--1,200 feet in saltwater and
 freshwater--all from one transducer. GARMIN's exclusive See-ThruTM
 technology lets the GPSMAP 235 Sounder hear both weak and strong signals
 at the same time, giving it tremendous dynamic range. The result is a
 4-level grayscale display that shows strong fish returns even when fish
 are inside structure and thermoclines. Over 25 square inches of active
 viewing area gives you sizable detail coverage. The electroluminescent,
 backlit screen measures an impressive 7.25" diagonally, yet the unit
 itself is slim enough-a mere 2.57" deep-for discreet and easy bulkhead
 flush mounting. A variable zoom window allows you to view increased
 detail at the touch of a button. You can even mark underwater waypoints
 to capture the position and depth of objects like reefs, dropoffs, or
 hazards and permanently store them for future use. The GPSMAP 235
 Sounder: It's everything you need for fishing in any condition.



                       Florida Anglers Are Seeing RED

 [redfish.gif (36184 bytes)]

 If redfish weren't native to Florida waters, anglers would be pressuring
 the marine biologists to invent such a fish. Properly, they should be
 called red drum, but just say "reds" and anyone in Florida will know what
 you're talking about. Reds can be caught in every coastal county of
 Florida. They take live, natural, and artificial baits, whether fished on
 the bottom, at mid-depths, or at the surface, and could care less whether
 you're using fly, spinning, or casting rods. True, they don't jump, but
 sizable redfish make long runs and pull with a tenacity that can cramp
 your hands and make your shoulders hurt, while at the same time saying,
 "Isn't this great?" And finally, if you're hungry for fish, their flesh
 is firm and sweet-tasting_fried, baked, broiled, or blackened.

 All but the neophytes at angling remember that redfish nearly disappeared
 in the mid-80's, but fisheries managers at both the state and federal
 level instituted conservation measures that have brought a rebirth to
 this important fishery. On a statewide basis, redfish are now our most
 dependable inshore catch. The near-loss of this cherished fishery,
 followed by its joyous renascence, has given thoughtful anglers a new
 attitude toward these copper-clad battlers. Anglers are more willing to
 curb their greed, and be satisfied with one 4-pounder instead of
 insisting on a cooler full of juveniles. Gamefish status and the one-fish
 bag limit has had another curious effect: it has created a
 catch-and-release fishery with three different aspects.

 First, responsible anglers who catch undersized fish release them with
 greater care, making sure they survive to be caught again. Second, some
 people release fish after fish of whatever size, thinking the next one
 may be the big one to take home. And most important, the assurance that
 reds bear no price tag encourages a growing number of anglers to release
 all of them, with the rationale that their value as sport is greater than
 their worth as food.

 Redfish enter the offshore spawning population at about 30 inches, and
 are protected in federal waters. Those below that size are an inshore
 fish, hanging around oyster bars, swash channels, tidal creeks, and
 hard-bottom grass flats. They grow fast, and the nine-inch window in the
 18- to 27-inch slot limit exposes them to harvest for less than one year.
 Those above and below the slot are catch-and-release all the time. Along
 with bonefish, permit and tarpon, reds have prompted runaway sales of
 flats boats, high-tech vessels that float in eight inches of water or
 less. Reds, however, are not class-conscious, and those with any small
 boat can get where they are. Low tide, rather than high, is the time to
 fish for them. Low water pulls the fish off the shallower flats,
 concentrating their numbers, and also makes them visible. Boats that draw
 little water are great, but once you're near the fish, staking out the
 boat and wading is more fun

 You need polarized glasses and a wide-brimmed hat, both for better vision
 and for protection against the glare of the sun. When looking for fish,
 act like there's no water there, but merely a pane of clear fluid between
 you and the quarry. Reds ghost along, gliding smoothly, stopping now and
 then to root a crab out of its hideyhole. This makes them tip forward,
 and if the fish is appreciably longer than the water's depth its tail
 pops up in view. On a calm day this can be seen from several hundred
 feet. In profile, the redfish's tail is squared off, reddish in color,
 its margin outlined in blue. Sheepshead are on the same flats, and also
 tail, but their caudal fins are nearly colorless, or tinged with green.
 Black drum show their much darker tails when feeding.

 In bonefish country, tailing reds can easily be distinguished from
 tailing bones by the latter's widely forked tail. Much of the time you
 will see only the top lobe of a bonefish's tail. When reds are hungry,
 the entire tail is exposed, including the eye-like spot at its base. Jim
 Dupre, a Gainesville-based redfish guide, says, "Sometimes reds tip up
 until they get vertical and then nose over, before they right
 themselves." Tailing reds are feeding reds. Waste no time, and move
 toward them quietly. Approach no nearer than the length of your maximum
 cast. The redfish have probably seen dozens of boats, and from
 familiarity might be able to identify the manufacturer of your gold
 spoon, so they're not reckless. If you're wading, crouch down as you get
 nearer, to reduce the height of your profile.

 Once a red is hooked, the others seem to lose their caution. They mill
 about the hooked fish, some trying to get the lure out of the mouth of
 the unlucky one. If the second angler can get a bait near the excited
 fish, a double is nearly assured. Fly rodders use this technique
 deliberately. Spinning outfits can throw a spoon much farther than most
 anglers can toss a fly. The person with the spoon hooks the fish and
 brings the school closer to the boat, the fly rodder casts a streamer
 into their midst, and the resulting bedlam is long remembered. Two
 anglers once found a school of feeding reds in the air-clear water off
 Crystal River. One of them had an underwater video recorder and taped the
 behavior of hooked and released fish in great detail.

 When hooked, reds of less than 3 pounds did a lot of head-shaking and
 tail-twisting, and if hooked in the lower jaw scraped their chins along
 the bottom. Bigger redfish acted surprised when first hooked, moving
 about aimlessly, but as soon as they realized they were in trouble, they
 seemed to square their shoulders and take off on a hard run. As their
 strength ebbed, they faltered and appeared to lose equilibrium, often
 coming toward the surface. After that, they got into head-shaking, much
 like the younger fish did when first hooked. There was also a pattern in
 the behavior of released reds. First they dived for the shadow of the
 boat, even though the water was less than 3 feet deep. They rested,
 sometimes tilting from side to side while shock wore off. Then they
 darted away, always in the direction of the school. They knew right where
 their buddies were.

 With the onset of cool weather in the fall, redfish move into tidal
 creeks, deep passes, and the coastal rivers. Once they enter
 tannin-stained water, their drab tints of red deepen to glistening
 coppery bronze, a color that would be inspirational to the most jaded
 artist. That must have been when the person who named them "redfish"
 first saw them. Save some film for photographing cold-weather reds;
 that's when they're pretty as a newly-minted penny.

 No, biologists, anglers don't need a new species; they already have
 redfish.

 [northstar1.gif (8273 bytes)]

                       [nstar_951.GIF (48085 bytes)]











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                          Links LS is competition!
                             NEW Links LS 1999.

              [Links LS 1999 Edition Box_s.jpg (20822 bytes)]

 Four real world-class golf courses have been stunningly and accurately
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 New Tournament Environment immerses you in a tournament atmosphere with
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 When you think you've mastered Links, move on to head-to-head competition
 via Access Software's internet tournament site LS Tour www.LSTour.com .
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 Supports more than 25 expansion courses! Choose from over two dozen
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 users: Internet play will require NT 5.0).

 [Links_LS_1999_Edition_Box_s.jpg (20822 bytes)]

 What you get with Links LS 99:

    * Make up your own games! New Mode of Play (MOP) Game DesignerÑcreate
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    * Two New Swing Options PowerStroke and 3-Click mouse swing options in
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    * Over a dozen new improvements for off-line tournaments! Play alone
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      and Internet tournaments.



                             The Linux Advocate



 Column #23
 October 16th, 1998

 by Scott Dowdle
 dowdle@icstech.net
 ICQ UIN: 15509440



 LOGIN:

 Hello again. I've actually started getting some email feedback from some
 column readers. Wow, some people actually read this column? :) I just
 wanted to say thanks to Edmund Horner, Bob Carpenter and John Helms for
 sending me some email. Bob and I actually got into a discussion about
 ApplixWare and KDE and I hope to twist his arm gently enough to get him to
 write an article or two for this column. If I had a prize to send out to
 you guys I would.

 I'm trying to do a better job of what I present in the news section. A few
 months ago one would see a couple of articles about Linux a week. Then it
 went to a dozen or so a week. Now it's to the point where there are usually
 five or more press articles about Linux per day and it is just too much to
 keep up with both for me and column readers. I'm not sure how long Linux is
 going to remain the darling of the computer industry press but while the
 traffic is so busy, I'll flatly ignore any columns that don't provide any
 new information. I think I've had my fill of "What is Linux?" columns.

 While I didn't get around to writing any spotlight pieces myself, I did
 borrow a few for your reading pleasure.



 NEWS:

 Item #1: Oracle has announced that it will ship and support a Linux
 distribution - That's the lead story this week over at the Linux Weekly
 News site. At press time it appears that Oracle is in the process of
 picking a Linux distribution to include with their database software
 although they state that the Linux versions of their software will run on
 all of the popular Linux distributions so it won't be tied to the one they
 pick. My guess is that they will go with either Red Hat or Caldera although
 it's about time Debian got the attention it deserves. What's exciting about
 this news to me is that they say they will offer technical support for
 Linux too, although no formal announcement has been made. Read the lead
 story at the following URL: http://lwn.net

 An additional story entitled "Oracle backs Linux to fight off Microsoft
 threat," can be found at the following URL:
 http://webserv.vnu.co.uk/www_user/plsql/pkg_vnu_msn.homepage?p_story=65174

 Item #2: Richard Stallman: Linux's Brave GNU World - Mr. GNU speaks yet
 again... this time concerning the recent announcements from Intel and
 Netscape about their investments in Red Hat Software. He makes some really
 good points and I actually agree with him that Linux isn't an operating
 system, it's just the kernel of an operating system... although it is plain
 to everyone who reads this column that I commonly refer to the "Linux
 Operating System." You can read the article at the URL below and follow
 along with the RealAudio clip also available.

 http://www.techweb.com/wire/story/TWB19981009S0019

 Item #3: Bring It All Back Home - A fantastically detailed article about a
 web site making some serious decisions about its future and what it decided
 to use to meet its current needs as well as have scalability for the
 future. I wouldn't be mentioning this unless they had chosen Linux, right?
 :) This is a very well written article... on several topics that I've been
 dealing with at work myself. The only flaw in the article is the author
 claims that there are not any friendly text editors and that simply isn't
 true. I sent him off an email telling him about one of my favorite text
 editors for X named nedit and actually got a reply back from him saying
 he'll check it out. Anyway, read this well done article at the following
 URL: http://webreview.com/wr/pub/98/10/09/wt/backhome.html

 Item #4: Another Pretty Face, For Free - The InternetWeek column on TechWeb
 was devoted to the developing GUIs for Linux. The article focuses mostly on
 GNOME but does mention the friction that exists between GNOME and KDE...
 which I've mentioned a few times in previous LA columns. There is not much
 new in this article but if you are not already familiar with the GUI
 developments going on for Linux, this is worth your reading time. You can
 find the article at the following URL:
 http://www.techweb.com/se/directlink.cgi?INW19981012S0042

 Item #5: Unix Wars, Part Deux - A "Mac Skeptic" mentions a previous article
 where he glossed over Linux and BeOS as he focused on the upcoming MacOS
 X... which ended giving him the most email responses he has ever gotten. He
 decided to take a closer look at Linux and actually calls it, "The most
 important software in the world today." He breaks down the history of
 software into three waves and calls Linux the leader of the third wave. I
 happen to like this article even though the author seems to get a little
 confused by separating the GNU Free Software Foundation movement and that
 of Linux... they are really related (see Richard Stallman news item above).
 Check it out at the following URL:
 http://macopinion.com/columns/macskeptic/oct98/981009.html



 SPOTLIGHT: Cathedrals, Bazaars and the Town Council

 I originally saw the following piece posted on slashdot.org but have since
 noticed it on on a few other sites as well. Aiding this piece in getting
 spread around can't hurt. I believe I've mentioned Alan Cox before but for
 any who needs an intro, Alan currently works for Red Hat Software but has a
 long history as a core Linux kernel developer being responsible for such
 things as the modularization of the sound drivers as well as fine tuning
 many different driver sub-systems. He is also a top notch bug spotter and
 fixer. Alan is one of the greater contributors to the Linux and Free
 Software movements. He is also a pretty darn good writer... witness for
 yourself.

 (begin long quote)

                  Cathedrals, Bazaars and the Town Council

 by Alan Cox

 These are some of my thoughts on the Bazaar model that I figure are worth
 sharing. Its also a guide to how to completely screw up a free software
 project. I've picked a classic example of what I think is best dubbed the
 "Town Council" effect (although town councillors may think otherwise).

 There are certain things you have to understand about software developers.
 The first thing to understand is that really good programmers are
 relatively unusual. Not only that but the difference between a true "real
 programmer" and the masses is significantly greater than that between
 "great" and "average" in many other professions. Studies have quoted 30 to
 1 differences in productivity between the best and the rest.

 Secondly you need to understand that a lot of the wannabe real programmers
 are very good at having opinions. Many of them also catch buzzword disease
 or have some speciality they consider the "one true path". On the Internet
 talk is cheap.

 The third part of any software project is what we shall call "the masses".
 They range between people who don't program but contribute massively in
 other areas - documentation, helping users and artwork to the sort of
 people that are often used to argue that you should require a license to
 connect to the Internet.

 The project I'm going to take as an example of how to screw up completely
 is the Linux 8086 project. Porting a subset of Linux to the 8086 is one of
 the worlds more pointless exercises on the whole, and something that
 started as a joke and got out of hand.

 There are a very small number of real programmers with the time and the
 right (or is that wrong) kind of mental state to contribute to a project
 whose sole real worth is "Hack Value". As a result of this at any given
 time the project has two or three core contributing people.

 Unfortunately there are a lot of people who think it would be neat to run
 Linux on an 8086 who feel obliged to "take part". Most of them in this case
 are in the "wannabe programmer" category as the masses spotted the "silly"
 factor of the project from a safe distance.

 The problem that started to arise was the arrival of a lot of (mostly well
 meaning) and dangerously half clued people with opinions - not code,
 opinions. They knew enough to know how it should be written but most of
 them couldn't write "hello world" in C. So they argue for weeks about it
 and they vote about what compiler to use and whether to write one - a year
 after the project started using a perfectly adequate compiler. They were
 busy debating how to generate large model binaries while ignoring the
 kernel swapper design.

 Linux 8086 went on, the real developers have many of the other list members
 in their kill files so they can communicate via the list and there are
 simply too many half clued people milling around. It ceased to be a bazaar
 model and turns into a core team, which to a lot of people is a polite word
 for a clique. It is an inevitable defensive position in the circumstances.

 In the Linux case the user/programmer base grew slowly and it grew from a
 background group of people who did contribute code and either had a basis
 in the original Minix hacking community or learned a few things the hard
 way reboot by reboot. As the project grew people who would have turned into
 "The committee for the administration of the structural planning of the
 Linux kernel" instead got dropped in an environment where they were
 expected to deliver and where failure wasn't seen as a problem. To quote
 Linus "show me the source".

 If someone got stuck they posted questions and there was and is a
 sufficiently large base that someone normally has both the time and the
 knowledge to reply. In the Linux8086 case the developers had long since
 walled themselves off. Given a better ratio of active programmers to
 potentially useful wannabe programmers would have rapidly turned some of
 the noise into productivity. The project would have gained more useful
 programmers and they in turn would have taught others. As with any learning
 exercise you are better off having only a few trainees.

 There is an assumption some people make that you can't turn the "lesser
 programmers" into real programmers. From personal experience in the Linux
 project there are plenty of people who given a little help and a bit of
 confidence boosting will become one with the best. There are many who won't
 but enough that will. [1]

 The Linux 8086 project has mostly recovered from its 'infestation' and is
 now a small quiet project, using CVS trees and led by Alastair Riddoch who
 has been doing a sterling job. With the town councillors De-camped its now
 possible to ask questions, join in and help the project. The lessons from
 this project, and others that went the same way (and sometimes died -
 remember the earlier Linux word processor projects) are fairly clear:

 Release code right from the start. It doesn't matter if its not very
 useful. The best way to sort a town council is to simply do the job then
 tell them it has been done. Linux, KDE and GNOME have all taken this
 attitude and all done well from it. You can argue about the right way to
 program for a lifetime. Once there is code out there people (whatever their
 skill) can play with it.

 Appreciate there are people who with a bit of help will contribute very
 much to a project. If their first patches are buggy don't put them down,
 explain why there is a problem and suggest solutions or places to look for
 examples of solutions. Every minute spent answering real questions helping
 someone work on a project will be paid back ten-fold to the project, and
 incalculably to society. Don't forget non programmers. I find it sad that
 many people when asked "name the most important five Linux kernel people"
 rarely name some of the most important folk of all - the all to forgotten
 people who maintain web sites, change logs, mailing lists and documentation
 are as important.

 Linus says "Show me the code". That is a narrow view of a real project.
 When you hear "I'd love to help but I can't program", you hear a
 documenter. When they say "But English is not my first language" you have a
 documenter and translator for another language.

 Try and separate useful people from the noise. It is hard to separate
 people trying to help from a mass of pointless discussion and in the Linux
 8086 case I definitely did the wrong thing by giving up on that goal. How
 to remove just those who talk and do not do anything is a research topic
 8).

 So next time someone wants to vote on a project, or discuss issues for a
 month and then implement it - be warned. They may end up with the right
 solution. The odds are however in your favour for carrying on regardless.
 Just ask them to send you a patch when it works.

 Beware "We should", extend a hand to "How do I"...

 Alan

 [1] As an example of this claim the original author of the Linux IPv6 code
 used to sit on irc from Portugal playing with a few basic ideas and asking
 questions. After we helped him figure some of the kernel internals he wrote
 probably 75% of the Linux IPv6 stack and was last seen working in the USA
 for cisco.

 (end long quote)



 SPOTLIGHT: Compaq Announces Linux Support

 This brief spotlight was a little too big to be a news item so I made it a
 spotlight. The following passage was borrowed from the Linux Resources site
 and I originally saw a link for it on slashdot.org.

 (begin long quote)

 Compaq Announcement at Decus

 Wednesday, October 14, 1998

 Compaq Computer Corp. announced at the Decus shows in Paris, France and in
 Los Angeles, California that it plans to extend its support of the Linux
 operating system to include Intel as well as the Alpha platforms, and is in
 the process of putting together a comprehensive program of support for
 Linux.

 Compaq will provide support in several ways:

    * Working with the Linux community to port Linux to new platforms
    * Qualification of Linux on both Intel and Alpha platforms
    * Providing selected platforms with no license, specifically for Linux
      and other freely available operating systems
    * Working with the Linux community and distributions to provide
      world-wide telephone and hardware support
    * Porting selected Compaq software products to both Intel and Alpha
      platforms

 Compaq also plans to increase Linux support through its extensive channels
 partner programs in order to provide the broadest possible selection of
 products and solutions.

 Welcome aboard, Compaq!

 (end long quote)



 LOGOUT:

 Well, I haven't placed my order for the upgrade to ApplixWare 4.4.1 yet but
 I am planning on doing so today. I hope to have some future material
 contributed by column readers if I can talk them into it. Anyone want to
 write up something about a piece of software they use on Linux or some
 project they solved with Linux? I can hunt down Internet news resources
 easily and present them here in the column but I think items written by
 non-professionals (like me) tend to be more interesting and they also get
 more people involved which is always a plus. If anyone has any story ideas
 or suggestions, feel free to send me some email. Enjoy!

 Scott Dowdle







                                 Pet Peeves

             Ex-president Bush sees Republican victory in 2000

 TOKYO (Reuters) - George Bush, former President of the United States,
 said Thursday he expects the Republican party to win the next U.S.
 Presidential election in 2000. "I believe the Republicans will capture
 the White House in the year 2000, for a lot of reasons," he told a group
 of Japanese business leaders, without elaborating. Although he said he
 felt his son, Texas Gov. George W. Bush, was a good candidate, Bush said
 he would have to first be selected from a field of Republican candidates
 likely to include Dan Quayle as well as several others. Asked if he had
 any advice for President Bill Clinton, currently facing a potential
 impeachment inquiry, he declined to comment in detail but did say he was
 "very concerned."

 Old Georgie Boy must have a helluva crystal ball or, he simply hasn't
 realized he lost the last presidential election.  Here, we find him
 running off in Japan about how well the Republican party is gonna do.
 Hahhahhah!  The only thing the Republican Party is going to do is prove
 that hateful politics yields a most severe backlash from voters.   George
 also yaps about the next Presidential Election like he has "plans" for
 his son, the governor of Texas.  Hah! if he is anything like either his
 father George or his brother "Jeb".... he's already lost the election.
 Do a little checking you'll be surprised at some the questions that'll
 pop up like.... are the voters satisfied with his performance in Texas??
 Has the question of trust in the electoral process and vote counts in
 Texas ever come up?  Why is there such vicious lawlessness in Texas??

 Then we see OLE Georgie jump up and act like he KNOWS something the rest
 of the world doesn't know about the Clinton Administration and its
 current "orchestrated" sex problems.  Sure he does... after all, he WAS
 the head of the CIA... and it was Clinton who defeated Bush.   rfm...

                       Netscape wins office browsers

 Netscape Communications' Navigator has increased its lead over
 Microsoft's Internet Explorer as the primary browser used in North
 American corporations, according to a new study. According to the report
 released Thursday by Zona Research, 60% of the 113 enterprises questioned
 said they use Netscape's Navigator as their default browser, compared to
 40% which said they use Internet Explorer. Zona's study contradicts
 research released last month by International Data Corp., which found
 that Navigator's market share dropped from just over half the installed
 base at the end of 1997 to two-fifths by mid-year 1998.

 Duh!!  Since when and where?? Is this "according to" anything like the
 old, "according to Hoyle" or, is it just a comfy phrase to help SELL an
 idea??  Who really cares if NS is the preferred browser or not?   What
 really should be asked is:  "Is your browser of choice actually doing the
 things you want it to?"

 Better yet.... where do all these so-called information gatherers get
 this highly volatile, ultra reliable information?  Zona???  From
 Carona?? What's the story here??  I have no idea where they get their
 info and I'm willing to bet they went out on the street and asked some
 twenty five or so business-like appearing people; "which browser do you
 use"?  Upon this "info" they come forward with a "study."  Study
 schmuddy!  From Dataquack to Zona we now have almost the entire alphabet
 covered with hot air magicians that have a tendancy to sway the
 weak-minded market, change fickle public opinion and give rise to the
 making or breaking of any product out there.  It's time the general
 population and of course the computer users began to think for themselves
 once again.  Whatever happened to the open forums?  The friendly chats by
 the water cooler?  The easy banter over lunch?  These demographic yahoos
 are, without a doubt, the biggest rumor mongers to ever hit the ether.
 They are, for the most part, usually wrong.  When they want to lend real
 credibility to what they are proffering... they say: "Industry Analysts
 say".... Notice how the word analyst is made up as anal-yst.  All that's
 missing in the second half of the word is a "c".  Then the word fits 99%
 of the so-called "demographic pros"  "anal-cyst".   rfm...







                         The Kids’ Computing Corner



                    Computer news and software reviews
                       from a parent’s point of view

 Frank Says:

 This old magazine has been dominated with political editorial comment
 over the last few months. I have felt that it was a bit out of place in a
 computer magazine, but Ralph is the publisher and he decides the content
 of STReport. So with that in mind, next week I’ll have a
 politically-oriented editorial right here. It isn’t going to be on the
 Clinton saga. It is intended to be totally non-partisan and I hope it
 will get everyone to think. By the way, if anyone would like to comment
 on this column, please send e-mail to fsereno@uti.com for now. Seems I
 lost the password for my streport.com mailbox. Mea culpa!

 Featured Review

 [Pacf.gif (191485 bytes)]

 Print Artist Craft Factory
 Windows95 CD-ROM
 About $20
 Knowledge Adventure, Inc.
 4100 West 190th Street
 Torrance, CA 90504
 (800) 545-7677

 www.KnowledgeAdventure.com

 Program Requirements
 OS: Windows 95
 CPU: 486 DX2/66
 HD Space: 32 MB
 Memory: 16 MB
 Graphics: 640 x 480, 256 colors
 CD-ROM: Quad-speed
 Audio: 16-bit sound card
 Other: printer



 Review by Frank Sereno fsereno@uti.com

 Parents, if you are looking for a fun and easy way to unleash your
 child’s creativity, you’ll be quite pleased with Print Artist Craft
 Factory from Knowledge Adventure. This CD-ROM includes hundreds of
 projects in more than 40 categories, thousands of cool clip art images
 and more. Kids will quickly and easily construct their own board games,
 busines cards, airplanes, party supplies, greeting cards, etc. It also
 includes a sample supply of Avery Kids paper products to make reusable
 stickers and other projects.

 Based on Sierra’s Print Artist, the program has been simplified for
 younger users, yet it still contains much of the power of the adult
 version. The interface moves the user through each step of the creative
 process of each craft project. Just click on an icon to make the project.
 You can choose to print a project as it exists on the CD-ROM, modify an
 existing project or build one completely from scratch. You can even
 import or scan your own graphics into the program. As the user selects
 different items on the screen, the available options will change.
 Numerous graphics and text options allow for artistic expression and
 creativity. If your child has difficulty with the program’s icons,
 audible help is available by clicking on the question mark icon or right
 clicking on an icon.

 Print Artist Craft Factory comes with a very complete and competent
 manual. It includes step-throughs on creating several projects, plus a
 pictorial listing of the graphics available on the disc. While it is
 rated for children 5 and up, I recommend helping your youngster with the
 program for several projects before letting him play on his own. While
 printers are fun, the consumables are VERY expensive.

 With winter blahs fast approaching (or even on a rainy day), Print Artist
 Craft Factory can be a wonderful diversion. With a few suggestions from
 you and the nearly endless variety of projects in the program, children
 will find many hours of creative fun. This disc comes with a $10 rebate
 offer and a 90-day 100% satisfaction guarantee. Print Artist Craft
 Factory has been a very popular product in my household and I am sure
 your family will enjoy it too.







                          Corel Gallery 1,000,000™
                             Corel Corporation
                    for Windows 95/98 and Windows NT 4.0

                  [Corel Gallery Box Shot.gif (9041 bytes)]



 Suggested Retail Price -- $129 US
 Estimated Retail Price -- $99.95

 http://www.corel.com

 Review by Donna Lines (dlines@uti.com)



 Corel Gallery 1,000,000™ is a GIGANTIC collection of high quality
 clipart, royalty-free photos, sounds, videos, animations, fonts, and web
 images on 14 CD-ROMs. Included are 815,000+ web images, 140,000 vector
 clipart images, 60,000 photos, 1,000+ fonts, 530+ sounds, and 125 videos.
 Also included is the WebSpice® Collection, a special collection of images
 that users can use to create Web pages. The WebSpice® Collection includes
 arrows and buttons; backgrounds; bullets; and rules. That’s not all --
 Corel has included Photo House 2.1, the easy-to-use photo-editing
 software that allows you to alter and enhance your digital images in a
 myriad of ways. It features over 30 image enhancements and special
 effects, from the very practical red-eye reduction or dust/scratch
 remover to the fascinating twist or pinch effects.

 Corel Gallery 1,000,000™ features a powerful search engine that makes it
 easy for the user to find just the right image for a project. Using the
 Search Page, just enter what you’re looking for -- such as "cat", then
 select the type of image you need. For example, say you’d like to see
 both clipart and photo images of cats, choose "all categories". If you
 search on "cat" in "all categories", the search finds over 1000 files.
 Since the program will only list the first 1,000 images, you will want to
 restrict your search. You can narrow your search by typing in more
 specific information, such as "Siamese cat", and choose to match all
 keywords. This time the program returns 12 clipart and photo files. The
 filenames listed will tell you which CD contains the images -- i.e.,
 7:458085.wi indicates photo image 458085 is on CD 7, while 9:Anim261.ccx
 is a clipart image on CD 9.

 The Browse Page allows you to view thumbnails (low resolution versions)
 of the images on the current CD-ROM. You can open an image by
 double-clicking it. This will launch Photo House, where you can view and
 change the image. One quirk about the program is that every time you
 double-click an image, another copy of Photo House will launch. This can
 use up system resources quickly. A better way to view multiple images is
 to drag and drop them into Photo House™, CorelDRAW™, or a similar
 program. You can also search for an image by looking through the color
 thumbnails in the user manual. Once you determine the image you wish to
 use, make a note of the category at the top of the page/section. Next
 check the Table of Contents in the front of the clipart section of the
 guide to find the corresponding CD number. A word of caution: the first
 edition of the user guide contained errors wherein the CD numbers were
 not listed for the categories in the Table of Contents. Corel has
 corrected the error and is now shipping the corrected user guide. Corel
 should also make this information available on their web site for those
 who received the first edition. Corel could improve the user guide by
 providing the corresponding CD number at the top of each category/section
 on the clipart page. Understandably, due to the size of this collection,
 there are also numerous files not documented in the user guide - 60,000
 photos, many clipart images, and the WebSpice® interactive content.

 The clipart images are saved in Corel Compressed Exchange file format
 (CCX), and the photos in Wavelet Compressed Bitmap (WI) format, which can
 be simply dragged and dropped from Corel Gallery 1,000,000™’s user
 interface into many of your favorite applications. If you require a
 different image format, Corel Gallery can convert the image to a number
 of different file formats including Windows Bitmap (BMP), Paintbrush
 (PCX), Adobe Photoshop (PSD), Tiff Bitmap (TIF), Wavelet Compressed
 Bitmap (WI), CompuServe Bitmap (GIF), JPEG Bitmaps (JPG), Corel
 Photo-Paint Image™ (CPT), Corel Presentation Exchange™ (CMX), etc.

 The WebSpice® Collection contains GIF images for use in HTML Web pages.
 Many of the images can be accessed directly by browsing CDs 2 - 6. There
 is also an interactive program to help you select Web images. To access
 the interactive guide, place CD #2 in the drive, and select "WebSpice
 Startup" from the Corel Gallery menu. WebSpice will start your browser
 (you must be connected to the Internet to use this feature). From the
 WebSpice menu you may select arrows, backgrounds, rules, or buttons by
 first selecting the style of the object, then the size, and finally the
 color. You then save your selection to your computer for importation into
 your HTML editor. I found the program to be very straight forward and
 user friendly. (Corel has included a 15% off coupon good towards
 purchases of other WebSpice products.)

 During the review period, I received the following error message when I
 double-clicked an image, and Photo House was launched: "Cannot find the
 file (the file name) or one of its components. Make sure the path and
 filename are correct and all the required libraries are available." The
 image would load properly in Photo House 2.1, but I found the error
 message annoying. Deleting Photo House 2.0 (included with Corel Print
 House™ Magic Deluxe) from the system and rebooting corrected the problem.
 The first edition of the user guide also did not have installation
 instructions, this has also been addressed in the new edition.

 I found the program to be user friendly and easy to navigate. The search
 feature is very simple and a great tool, especially if you’re short on
 time. This is the most comprehensive collection of photos, clipart, and
 Web images to date. You would be hard-pressed to find a more complete
 collection of high quality images compatible with most software. I highly
 recommend this product, it is well worth the asking price.

 System Requirements:

 486 DX or better processor; Windows 95/98 or Windows NT 4.0; Netscape 3.0
 or Microsoft Internet Explorer 2.0 or any browser that supports HTML 3.0;
 16 MB System; SGVA Card and Monitor; mouse or tablet; and CD-ROM drive





[Image]

Special Notice!! STR Infofile File format for Articles

                          File Format for STReport

All articles submitted to STReport for publication must be sent in the
following format. Please use the format requested. Any files received that
do not conform will not be used. The article must be in an importable word
processor format for Word 6.0 and/or Word Perfect 7…. The margins are .05"
left and 1.0" Monospaced fonts are not to be used. Please use proportional
fonting only and at Twelve (12) points.

   * No Indenting on any paragraphs!!
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If there are any questions please use either E-Mail or call.

Many grateful thanks in advance for your enthusiastic co-operation and
input.

Ralph F. Mariano, Editor
rmariano@streport.com
STReport International Online Magazine





  [Image]  STR Editor's Mail Call "...a place for the readers to be heard"







                              Editor's MailBag



                    Messages * NOT EDITED * for content





 From: John O'Hare [john.ohare@convergys.com]
 Sent: Monday, October 12, 1998 11:17 AM
 To: rmariano@streport.com
 Subject: Florida

 I plan on voting straight democratic on election day, however it's sort
 of sad that we live in a state which seems to blindly follow the crooked
 republicans. For once I would like to see the republican's lose most of
 their elections in this state. It's important that everyone votes this
 year. As for Jeb Bush, I'd sooner not vote than vote for that jerk. To
 bad the democrats couldn't come up with someone better than Buddy though.
 That guy acts like he just fell off the turnip truck. Good Luck!

 Lord knows, I couldn't agree more with you. Bush and his entourage have
 some pretty neato skeletons in their closets. Elsewhere in this issue, we
 have a piece that confirms my contentions that Daddy, G. H . Bush is at
 the helm and...as he always has been… stumping for the party and running
 his mouth. Georgie boy hasn't slowed a bit… I'm willing to bet he is
 remotely but very directly behind all of the Demo's and Clinton's
 problems, from the lack of cooperation in The House to the tape setup
 with Starr, Monica and Tripp. As for Buddy Mackay and his ticket, they're
 pretty good.  After all, Buddy has plenty of experience in Florida
 Government and he DOES know the State's needs and wants.  I think he'll
 do ok.  As will Senator Bob Graham if re-elected.  Tillie Fowler is
 another Republican "party-line" puppet!  She has to go....  Active
 Florida Republican Politicians are so.... doggone SMUG.. they need a good
 slap in the form of election losses.  Oh well, don't get me "started".
 Thanks for writing and of course, reading our humble offering.    rfm...





 [image87.gif (45316 bytes)]

 Classics & Gaming Section
 Editor Dana P. Jacobson
 dpj@streport.com





 From the Atari Editor's Desk "Saying it like it is!"



 Not much to say this week. The weather has been dreary for seven straight
 days (no sun) and I've felt just about the same. Autumn in New England
 can be terrific, but consecutive cloudy/rainy days tend to ruin it.  Mac
 users should feel good that Apple had a successful quarter for a change.
 If they're fortunate, they'll survive a bit longer. I'm curious as to the
 outcome of the pending Microsoft case; it should be interesting.

 Until the next time...





                     Diamond Back Owners - New Version

 From: Michael White

 Date: 13 Oct 1998

 All,

 As the new owner of Diamond Back, I'm happy to announce that there will
 be a new version. I'm still in the learning and experimentation stage, so
 there's still a ways yet to go (sorry, I'm not going to give any dates).
 As for new features for Diamond Back 4, here's what I've got planned (not
 set in stone):

    * Support of Minix and VFAT file systems
    * Re-structuring the tape backup to make it more robust (I've lost too
      many log files to version 3.5)
    * Support of Tar-format tapes
    * (Maybe) CD ROM support

 I know this list isn't large, but remember I'm in the learning stages.
 And the Minix/VFAT stuff will require quite a bit of work (a lot of the
 current code has the 8+3 stuff ingrained). The look and feel will remain
 the same, except as needed to expand functionality or fix bugs. What I'd
 like from current owners of Diamond Back is:

   1. Any bugs you've seen (please include your system info, the backup
      method used, how you've got Diamond Back's options set, your
      version, etc...)
   2. Any new features that -won't- require a large re-work of Diamond
      Back (another file system, maybe, if it's close to Minix or VFAT;
      working with a PC's tape drive under MagicPC, I kind of doubt it)
   3. And yes, I do plan on keeping it a commercial product.

 Note that I am also the new owner of Diamond Edge, but, I thought it
 would be prudent to have a way to restore a file system -before- I start
 experimenting with optimizing and repairing it. Hence the new version of
 Diamond Edge will have to wait. But, if there's sufficient interest, I
 can release the current version (with any current bugs it may or may not
 have). I just won't be able to provide any "real" support.

 If you have any questions or comments, feel free to email me.

 Thank you,

 Michael White michael@fastlane.net





                               Gaming Section



    * Can DreamCast Succeed?
    * "H.E.D.Z."!
    * "Elmo Kids"!
    * "Tomb Raider"!!
    * "WCW Nitro"!!
    * DVD Games, RSN??
    * Game Boy Color!
    * And much more!



 From the Editor's Controller - Playin' it like it is!

 It's going to be an incredible holiday season for gaming fans! Not only
 will Sony and Nintendo be bringing out tons of new games, but new gaming
 options such as Dreamcast and Game Boy Color will add to the fun. If only
 Atari had had the wherewithal to capitalize on the seriousness of the
 console gaming market. And I still remember the throng of people stating
 that Nintendo was going to take over the market with the N64. Nintendo,
 like Atari, should have realized that name recognition alone will not
 bring success.

 Anyway, I'm looking forward to hearing about all of the upcoming games
 and hardware to come out, and bringing that news to you. For a change,
 I'm actually not jealous not owning a console other than my Jaguar; I'll
 manage to save some money for a change. Maybe in the near future I'll
 consider another console, but for now I'm "happy" just reporting about
 them!

 Until next time...





 Industry News STR Game Console NewsFile - The Latest Gaming News!



               Sega's Dreamcast May Not Topple Game King Sony

 Sega Enterprises Ltd's new Dreamcast player will open a new front in the
 lucrative home video game market, but analysts doubt whether it can erode
 Sony Corp's commanding market position. Sega hopes to win market share by
 introducing Dreamcast, which offers high-resolution graphics and a
 64-channel sound system, in Japan on November 27. The 128-bit Dreamcast
 platform, along with several new hand-set games, should be the focus of
 attention at a three-day Tokyo Game Show that opened today.

 Dreamcast, priced at $256, is based on Microsoft Corp's Windows CE
 operating system and has Internet access capability. Sega should take the
 industry lead in offering home video game hardware with communications
 capability, analysts said. They said that on the back of its high-quality
 graphics and attractive software line-up, which will include Capcom Co
 Ltd's new Biohazard series, Dreamcast was likely to achieve its shipment
 target of one million units by year-end. But they said Dreamcast might
 only manage to recoup the falling market share of the 32-bit Sega Saturn
 games console.

 Few said Sega could beat Sony. Following its launch in Japan in December
 1994, Sony's 32-bit layStation game console quickly captured the leading
 position among game machines, riding a wide variety of games software. At
 the end of March, PlayStation enjoyed a 55 percent global market hare,
 followed by 30 percent for Nintendo Co Ltd's 64-bit Nintendo64. Sega, hit
 hard by poor sales in the United States, had about 15 percent.

 "I think Sony will take more than one year to introduce a new-generation
 games console, so until then Dreamcast can take advantage. Its quality
 graphics capability and attractive software titles may encourage buying,"
 said Nobumasa Morimoto, a senior analyst at Wako Research Institute of
 Economics. He said Dreamcast sales might top five million units within a
 year of its launch, and good demand was expected after Sega's new model
 began retailing overseas next September. "Still, I don't see any big
 change in current market share structure," he said. Yuichi Kobayashi, a
 New Japan Securities analyst, said he could not find an overwhelming
 strength in Dreamcast.

 "Sony can produce a new machine with similar functions sometime later, so
 those who began gaming with PlayStation, in particular, may just wait for
 Sony," he said. Nintendo, meanwhile, is going its own way. Instead of
 joining the race to grab a larger slice of the home video game market,
 Nintendo has built up a dominant position in hand-set game machines with
 its popular Gameboy. "I think that in terms of portable game machines, no
 company can beat Gameboy," said New Japan's Kobayashi.

 Nintendo plans to retail a new Gameboy with a color screen in Japan on
 October 21, and in overseas markets by December. The new products will be
 priced at about 8,900 yen. Analysts said Nintendo's strength was based on
 recent run-away sales of its popular "Pocket Monster" game – a craze
 among school children. Shipments had exceeded 11 million units by the end
 of September, since its launch in February 1996.

 Rivals have been quick to react. Sony plans to begin retailing in Japan
 on December 23 a small personal digital assistant (PDA) game,
 PocketStation, which can also be used as a memory card to save
 PlayStation video games. PocketStation will be priced at 3,000 yen.

  Nintendo Adds Color to Its "Rainbow" of Products With New Game Boy Color
                                   Titles

 Nintendo of America Inc. announced the line-up of full-color games to
 launch with its new Game Boy(R) Color system in time for the height of
 the holiday shopping season. The pocket-sized, portable game system
 displays games in bright colors and will be available in two hardware
 variations: purple and transparent purple. Set for a November 23rd
 simultaneous release with Game Boy Color, the Nintendo-published titles
 include:

    * Tetris DX - Features Marathon, the classic Tetris game, along with
      three other twists on the popular puzzler, Ultra, 40 Lines and VS, a
      two-player game mode
    * Pocket Bomberman - A new platform-style Bomberman adventure with
      classic Bomberman game play elements
    * Quest For Camelot - Based on the Warner Bros. animated film of the
      same name, players collect weapons and various powerful items,
      interact and battle with many of the same characters from the movie
    * Game And Watch Gallery 2 - Original and updated versions of five
      classic Game and Watch games: Parachute, Vermin, Chef, Donkey
      Kong(R) and Helmet

 In addition to the Nintendo titles, more than 10 third-party Game Boy
 Color-compatible titles are expected to hit holiday store shelves next
 month. The new Game Boy Color units are similar in size to the existing
 Game Boy pockets, and can display up to 56 different colors
 simultaneously from a 32,000-color palette. The system features a new,
 proprietary technology making it possible for the screen to display sharp
 and vivid graphics so you can play both indoors and outdoors and see
 images clearly. Notably, Game Boy Color will play more than 1,000 titles
 already released for the Game Boy system since its introduction in 1989.
 "With the holidays near, Game Boy Color makes a perfect gift or stocking
 stuffer," says Peter Main, Nintendo of America's executive vice
 president, sales and marketing. "Game Boy pocket continues to be a hot
 seller, so we expect the same will happen with Game Boy Color. This is
 what consumers have been asking for."

     Midway's NFL Blitz and Mortal Kombat 4 Among Game Boy Color Titles

 Seven Midway Titles To Be Available for Nintendo's New Handheld Game
 System - Three as System Ships in November Feel the adrenaline of San
 Francisco Rush: Extreme Racing, the crush of NFL Blitz or the nostalgia
 of Defender & Joust on the go! Midway Home Entertainment today announced
 that seven of its most popular games will soon be available for the
 Nintendo Game Boy Color system. Three of the titles will ship
 simultaneously with the expected November 23 launch of Nintendo's
 enhanced portable play platform. The November releases are NFL Blitz,
 Mortal Kombat 4 and Rampage World Tour which will be followed later by
 San Francisco Rush: Extreme Racing and double-packs

  Spy Hunter & Moon Patrol and Defender & Joust, as well as the skateboard
                              sim 720 degrees.

 "With over 65 million units sold worldwide and the likelihood of strong
 sales of the color version, Game Boy is a great selling platform and
 Midway is fully supporting it with the release of seven of our most
 popular titles for the system," said Paula Cook, director of marketing
 for Midway Home Entertainment. "Titles like NFL Blitz, Mortal Kombat 4,
 San Francisco Rush: Extreme Racing and Rampage World Tour have already
 enjoyed great success for coin-op and home platforms. Were excited to
 extend our platform independence even further." Midway's Line-Up for
 November Game Boy Color Features: NFL Blitz - Based on Midways "No Refs.
 No Rules. No Mercy." coin-op hit, NFL Blitz is packed with everything
 fans love about NFL football. The game boasts seven-on-seven football
 action with easy arcade-style controls in an everything goes version of
 the NFL. An officially licensed NFL and Players Inc product, NFL Blitz
 features all 30 teams, comprised of seven of the best offensive and
 defensive players from each team.

 Mortal Kombat 4 - Released this summer on multiple platforms, MK4
 continues the carnage that has captivated both the coin-op and home
 gaming community. This fight-to-the-finish slug-fest features fifteen
 characters including returning favorites Sub-Zero, Sonya, Reptile, Jax
 and Scorpion. MK4 features interactive arenas with hand-to-hand battle,
 and the ability to steal their opponents weapons to use against them.
 Rampage World Tour - Take out your frustration on this sensational smash
 'em up game that has entertained coin-op and home gamers alike. Simple
 enough for anyone yet full of depth and challenge to appeal to the
 serious gamer, Rampage World Tour sends up to three players on a quest to
 damage, demolish and destroy scores of city streets, skyscrapers and
 soaring aircrafts. Secret moves help fend off the constant stream of
 bullets, fire and explosives.

             Sony, Nintendo Console Sales Soar After Price Cuts

 Oct. 09, 1998 (Computer Retail Week - CMP via COMTEX) -- San Mateo,
 Calif. - Sales of video-game systems have nearly doubled in the two
 months since the Nintendo 64 and Sony's PlayStation 5000 series assumed a
 lower price. According to figures from The NPD Group, Port Washington,
 N.Y., unit sales of Sony and Nintendo's video-game systems increased
 almost 100 percent from May to June. Analysts said the PlayStation
 continues to outsell N64 by about 2-to-1. Each manufacturer dropped its
 system's suggested retail price from $149 to $129 in early June.

 Since the price change, PlayStation hardware and software sales have
 increased by 30 percent to 100 percent, depending on the week, said Jack
 Tretton, vice president of sales, Sony Computer Entertainment of America.
 "The numbers are very, very hot for what would normally be about the
 slowest time of the year," Tretton said. etailers report greater
 video-game sales, too. "I'd say we have seen a 25 percent to 50 percent
 increase," said a sales associate for a video-game store in Stockton,
 Calif. The price cut jump-started stalled N64 sales, he said, but
 PlayStation benefited the most. "We've completely sold out of the 5000
 series," the sales associate said.

 At press time, there were about 200,000 unsold 5000 series units, Tretton
 said. Nintendo officials declined to comment. At the Electronic
 Entertainment Expo in May, Sony said it would include the Dual Shock
 Analog Controller, a force-feedback gamepad, in the PlayStation 7000 for
 a $149 SRP. The 5000 series systems, which include a standard digital
 controller, were marked down to $129. Following suit, Nintendo of America
 lowered the N64's SRP to $129, calling it a "temporary" reduction that
 would last through September. Despite the cuts, both companies continued
 their minimum advertised price of $149. Nintendo has since reduced its
 MAP to $129, fueling speculation that the price move is a permanent one,
 retailers said. Tretton said Sony's $149 MAP policy will stay in effect
 for all PlayStation systems, but he said that a price change this fall
 for the 7000 series is possible.

                  DVD-ROM Watershed: No Time Soon Software

 Oct. 05, 1998 (MULTIMEDIA WEEK, Vol. 7, No. 39 via COMTEX) -- Don't
 expect even 10 percent of the new PC titles out for the holiday selling
 season to be DVD-ROMs. The software's evolution has been so much slower
 than expected, industry watchers are uncertain if the media will take off
 enough in the next 12 months to make Christmas '99 a blockbuster DVD-ROM
 season.

 "A few companies are putting a toe into the water; that's about it," said
 Ann Stephens, principal of retail tracker PC Data, based in Reston, Va.
 "There are next to no DVD titles out there." Stephens doesn't expect DVD
 to make a significant dent in retail shelf space until 2002 - so far into
 the future she's unwilling to say what percent of the software market
 DVD-ROM will grab in the next one or two years. And Stephens isn't the
 only market watcher skeptical about the new media's ability to penetrate
 the market.

 Walter Miao, vice president of New York-based Access Media International,
 can count only five or six DVD-ROM titles out of the 1,800 planned to
 ship in time for the fourth quarter. Miao cited the sub-$1,000 PC market
 momentum and incompatibility as the two major trends working against
 DVD-ROM growth. At the OEM level, DVD drives cost about $100 each,
 compared to $25-$35 for ubiquitous CD-ROM drives, Miao said. That's a
 huge cost burden for PCs selling from $500 to $1,000.

 Incompatibility also is inhibiting the growth of DVD-ROM. Despite
 improvements in Windows 98, there is a lack of compatibility among DVD
 drive manufacturers. A title might work on one drive, but not another. PC
 OEMs and drive manufacturers must resolve compatibility issues before
 consumers rush to embrace the products. Gamers just don't want to deal
 with the hassles, or the frustrations, analysts said.

 Meanwhile, game manufacturers are waiting for the installed base to grow
 before they start issuing old and new game titles on DVD-ROM. The
 installed base of drives will have to reach one million or so before game
 publishers jump on the technology in a big way, Miao said. And that
 number is at least a year away, given the slow growth of high-end PCs
 featuring DVD-ROMs.

 Lack of a significant installed base of DVD-ROM-and few promises of a
 return on development costs-are keeping publishers from embracing the
 media. Officials with Hasbro Interactive concurred that the sub-$1,000 PC
 market is having a negative impact on DVD-ROM software. "We're in a tough
 position," said Dana Henry, Hasbro spokeswoman. "The sub-$1,000 market is
 our market." Hasbro is considering shipping one or two DVD-ROM titles by
 Christmas '99. The Learning Co. [TLC] of Cambridge, Mass., just released
 The Complete National Geographic Magazine, a DVD-ROM containing issues
 from the last 109 years. The company also is issuing the popular Oregon
 Trail on DVD-ROM for the fourth quarter.

 Broderbund Software Inc. [TLC] has been quick to jump on DVD-ROM through
 the company's Red Orb division, with a version of Myst's sequel Riven and
 The Journeyman Project 3: Legacy of Time, both of which shipped last
 month. The company has a few other ROM titles in the works. Sierra
 On-line Inc., a dominant PC game company, continues to take a
 wait-and-see approach to DVD-ROM. The company has no plans for DVD
 releases this holiday season and is withholding a decision on the '99
 holiday season.

 Developers skilled in the ways of MPEG-2 and other DVD components, are
 seeing business for the technology pick up slightly. "It's nothing
 drastic, but we are getting more inquiries and much more savvy questions,
 said Blaine Grabois, co-founder and creative and technical director for
 developer Zuma Digital in New York City. "It's not the flood everyone
 predicted."

        Macworld First to Bring Tomb Raider II Demo to Non-web Users

 SAN FRANCISCO (Oct. 8) BUSINESS WIRE - Oct. 8, 1998 - Macworld Online
 Announces Tomb Raider II Available for Download; For Non-Web Users,
 Macworld's December Newsstand Issues to Feature Tomb Raider II CD
 Macworld magazine, the leading Macintosh monthly published by Mac
 Publishing, L.L.C. announced today that the long-awaited Tomb Raider II
 demo is available for download on its web site at

 Internet surfers will find the demo on the home page of the site today at
 12:00 p.m. PDT. In addition, for Mac gamers who would rather not download
 the 8.5MB file, Macworld's December newsstand copies will feature a
 special Lara Croft cover with a CD-ROM of the Tomb Raider II demo.
 December issues with the CDs will hit newsstands November 10. "We're
 thrilled to be the first to bring Tomb Raider to the legions of Mac
 gamers who have been anxiously awaiting Lara Croft's premier appearance
 on the Mac platform," said Andy Gore, editor-in-chief of Macworld
 magazine. "Offering the demo online and as a cover mounted CD ensures
 that Mac fans everywhere will have access to one of the most popular
 games ever."

 Tomb Raider, originally created by Eidos Interactive, a leading developer
 of games for the PC, PlayStation, and Nintendo 64, has been one of the
 most successful computer games ever with sales of over nine million
 copies of the entire Tomb Raider series. Tomb Raider II is being brought
 to the Mac platform by Aspyr Media, Inc., maker of popular Macintosh
 games like Carmeggedon and BonkHeads.

           Heads Up! Hasbro Interactive's Action-Packed H.E.D.Z.

 BEVERLY, MASS. (Oct. 8) BUSINESS WIRE - Oct. 8, 1998 - Hasbro
 Interactive's first original content game is coming at gamers head-on! In
 H.E.D.Z. -- Head Extreme Destruction Zone(tm), players put their heads
 together, literally 225 of them, to collect the most heads. H.E.D.Z.
 delivers hours of heart-pumping game play, with over 25,000 different
 head-to-head battle combinations in solo or multi-player modes.

 "H.E.D.Z. is like nothing you've ever played before, or even imagined,"
 says Tom Dusenberry, president of Hasbro Interactive. "From the story
 line to combat methods to the collectible nature of the game, H.E.D.Z. is
 a truly original, totally exciting gaming experience." eek and destroy is
 the name of the game as players battle to become the best head hunter in
 the galaxy. H.E.D.Z. is the national sport of an alien race, set in a
 series of interconnected asteroid zones called the Nappa Flux. The
 ultimate goal of the game is to pillage and plunder through more than 20
 levels in eight 3D worlds to collect the most heads.

 Players begin the game by selecting five of the 225 heads to enter the
 zone. Each head is equipped with a unique battle power to attack and
 defend against opponents. Some powers are physical, while others are
 vehicle- or aerial-based. For example, the "Aircraft Carrier Head"
 launches a fleet of fighter planes from his runway-flattened head, while
 the "Poodle Fancier" combats her opponents by unleashing her feisty
 French poodle -- don't let those pink ruffles fool you, her bite is much
 more ferocious than her bark.

 In each combat zone players go head-to-head with any of the 225 different
 "Hedz" characters. Players must use their weapons to make their
 opponents' head pop off, all the while trying to protect their own! After
 a few dozen hits against an opponent their head will pop off and appear
 as a token in the environment - a "dead head." Once a head is "dead,"
 players can pick them up and store them in their "backpack." In order to
 use the heads in the backpack, "DeadHeads" must be re-charged with
 "Zedz," Hedz money, that can be collected throughout the different
 levels.

 H.E.D.Z. is an action game full of strategy and risk - every time a
 player enters combat, he is literally putting his head on the line.
 Players must be strategic from the outset, choosing and using the right
 head or combination of heads at the right time to maneuver the different
 levels. If defeated by the opponent, the player's head can be collected
 by rival players and can only be regained by winning it back in future
 combat.

 H.E.D.Z. PC CD-ROM can be played on Windows 95 systems and is available
 in stores at the suggested retail price of $39.99. Players also can
 challenge others to combat in the Head Extreme Destruction Zone, over
 LAN, modem-to-modem or over the Internet. Check out more about H.E.D.Z.
 at www.hedz.com For more information on other Hasbro Interactive games,
 visit www.hasbro-interactive.com.

          THQ Brings Explosive World Championship Wrestling to PC

 CALABASAS, CALIF. (Oct. 8) ENTERTAINMENT WIRE - Oct 8, 1998 - THQ Inc.,
 publisher of three top-selling and critically acclaimed WCW wrestling
 titles for Nintendo 64 and PlayStation, is climbing the top rope and
 preparing to slam the explosive "WCW Nitro" onto home PCs. This
 first-ever WCW wrestling game for the personal computer features all of
 the rants, flavor and excitement of the top WCW and NWO superstars. The
 title is scheduled for launch in December 1998.

 "THQ has made its mark by publishing award-winning wrestling titles on
 other major gaming platforms," said Brian J. Farrell, president and CEO,
 THQ. "It is time to give wrestling fans with home PCs the chance to
 experience the phenomenally popular WCW brand of in-your-face wrestling
 excitement." "WCW Nitro" features photo-realistic 3-D graphics and is the
 first WCW PC wrestling game available. Building on the award-winning
 PlayStation version, "WCW Nitro" for PC features the top WCW and NWO
 wrestlers, new moves -- such as "Goldberg's Jackhammer" and "Hogan's Leg
 Drop," and lightning fast four-player action.

 Players will be able to control and play as any of the more than 60
 grapplers, each with their signature move and personalized rant. In
 addition to an updated roster of WCW and NWO characters, "WCW Nitro" also
 features all new intro and winner movies. Under its agreement with World
 Championship Wrestling, THQ published "WCW Nitro" for PlayStation, which
 was voted "Best Fighting Console Game" and was presented "The Platinum
 Award" by Sony to commemorate the manufacture of more than 500,000 copies
 of the game for 1998.

 THQ also published "WCW vs. NWO: World Tour" for the Nintendo 64 (which
 was recognized by the Academy of Interactive Arts and Sciences as "1998
 Fighting Game of the Year," and by GamePro magazine readers as "Best
 Fighting Game") and "WCW vs. the World" for the PlayStation (which was
 presented "The Gold Award" by Sony to commemorate the manufacture of more
 than 250,000 copies of the game for 1998).

        NewKidCo Creates a New Market for Nintendo's Game Boy Color

 Continuing its mission to become the leading developer of interactive
 games for children, NewKidCo will introduce Elmo's 123s and Elmo's ABCs
 for the Nintendo Game Boy Color – helping extend the appeal of the
 popular hand-held game system to an untapped, younger audience. Targeted
 to children ages 3-6, each immersive title features the wildly popular
 Elmo character leading preschool-aged players through entertaining and
 challenging activities. Both Elmo Game Boy titles offer hours of engaging
 gameplay for young children just grasping letter and number recognition,
 while providing a head-start on learning simple spelling and math skills.
 Elmo's 123s and Elmo's ABCs are expected to ship in early November for
 the suggested retail price of $24.95 each.

 Elmo's 123s and Elmo's ABCs mark NewKidCo's second collaboration with
 Children's Television workshop to develop interactive games for young
 children. The first titles in their partnership, Elmo's Number
 Journey(TM) and Elmo's Letter Am), represent the first-ever
 PlayStation(R) titles designed for the preschool set (children ages 3-6).
 Designed for easy use by young children just developing eye-hand
 coordination, Elmo's 123s provides valuable and fun activities such as
 "Beam That Number" and "Sum Up, Sum Down" that enhance number recognition
 and help children comprehend simple addition and subtraction concepts.
 Hosting the title from his Flying Saucer, Elmo is accompanied by tiny
 spacemen called Stars that children must count, add or subtract. To
 provide children with a sense of accomplishment, players are rewarded for
 successfully completing each activity through a special on-screen
 demonstration -- such as Elmo blasting off in his spaceship. A variety of
 skill and difficulty levels promotes replayability for hours of portable
 edutainment.

 Children will delight with the opportunity to utilize their new knowledge
 of the alphabet to identify upper and lower case letters and spell simple
 words. Similar to Elmo's 123s, controls are easy-to-use for young
 children and many levels of play are available for long-time enjoyment.
 In the most basic level, children identify letters on a ferris wheel by
 their case and are rewarded for three correct answers with a
 congratulatory dance performed by Elmo. Once they have mastered letter
 cases, children continue learning with simple spelling activities
 including "One Little Word" and "Spell The Secret Word." These spelling
 games range from picking the missing letter from a short word, to
 eventually creating a three-letter word from six letters provided.

           989 Studios Running Wild for Young PlayStation Owners

 Oct. 09, 1998 (MULTIMEDIA WIRE, Vol. 5, No. 196 via COMTEX) -- As
 Nintendo reaches for the older console gamer, Sony Computer Entertainment
 America guns for Nintendo's bread and butter, kids. With that strategy in
 mind, SCEA daughter company 989 Studios is shipping kid-targeted racing
 game Running Wild. In the last eight months PlayStation ownership among
 6- to 12-year-olds grew 50%, 989 Studios Product Manager Michael
 Lustenberger tells MMWire.

 It's those 6- to 12-year-olds who are buying (or receiving as gifts)
 Sony's console. With the recent launch of Sony's Spyro The Dragon, a
 character with the rare chance to put a chink in Mario's armor, youthful
 PSXers are looking for something to augment their game libraries and
 that's what 989 believes it has provided. Running Wild asks players to
 pick an animal, like a zebra, bull or panda, to run through six worlds.
 Consider it a cute driving sim in the same way that Nintendo's Diddy Kong
 Racing and Mario Kart 64 are cute, not-so-realistic driving sims.

 Crashing the kids market, however, doesn't offer as high a return on
 investment for Sony as bolstering its current demographic of dominance,
 the 17- to 34-year-old male. "I don't know if it's a good strategy,"
 Fairfield Research analyst Gary Gabelhouse says. It's a lot easier to
 "make good customers great and regular customers good" than it is to
 convert consumers from Nintendo, he says. Sony's strategy isn't a losing
 proposition but especially from a marketing standpoint, it is expensive,
 Gabelhouse adds.





 ONLINE WEEKLY STReport OnLine The wires are a hummin'!

                            People are Talking

 compiled by Joe Mirando
 jmiriando@streport.com

 Back next week - Joe's been under the weather all week and unable to get
 his column together.









                             EDITORIAL QUICKIES





                                 NEW WORDS

 Foreploy       any misrepresentation about yourself for the purpose of
                obtaining sex.

 Fortissimoe    the musical moment produced when someone serially slaps
                the faces of the first-violin section.
 Tatyr          a lecherous Mr. Potato Head.

 Doltergeist    a spirit that decides to haunt someplace stupid, such as
                your septic tank.

 Giraffiti      vandalism spray-painted very, very high, such as the
                famous "Surrender Dorothy" on the Beltway overpass.

 Sarchasm       the gulf between the author of sarcastic wit and the
                recipient who doesn't get it.

 Contratemps    the resentment permanent workers feel toward the fill-in
                workers.
 Coiterie       a very VERY close-knit group.
 Whitetater     a political hot potato.

 Impotience     eager anticipation by men awaiting their Viagra
                prescription.
 Reintarnation  coming back to life as a hillbilly.
 DIOS           the one true operating system.
 Inoculatte     to take coffee intravenously when you are running late.
 Hipatitis      terminal coolness.
 Writer's tramp a woman who practices poetic licentiousness.
 Taterfamilias  the head of the Potato Head family.
 Guillozine     a magazine for executioners.

 Adulatery      cheating on your wife with a much younger woman who holds
                you in awe.
 Emasculathe    a tool for castration.
 Burglesque     a poorly planned break-in. (See Watergate)

 Genitaliar     an image-enhancing object that can be carried in a man's
                front pocket.
 Glibido        all talk and no action.
 Eunouch        the pain of castration.

 Hindkerchief   really expensive toilet paper; toilet paper at Buckingham
                palace.
 Hozone         the area around 14th street.

 Dopeler effect the tendency of stupid ideas to seem smarter when they
                come at you rapidly.
 Hindprint      indentation made by a couch potato.

 Intaxication   euphoria at getting a refund from the IRS, which lasts
                until you realize it was your money to start with.





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