Microsoft Research demonstrated a number of cutting-edge technologies that are under development, including a transparent display that uses computer vision, technology that brings real-world aspects back into computing, and the use of spatial memory to navigate source code. At an event at the Redmond campus to celebrate Microsoft Research’s 15th anniversary, Redmond lab director and corporate vice president Dan Ling moderated a demonstration of a prototype of technology that uses sensing as a real modality.

Microsoft said Wednesday that it is teaming with "Lord of the Rings" director Peter Jackson to create content for its Xbox 360, in part to get more mainstream users interested in the company’s video game console. Just don’t call these products "games." "I don’t want to classify it as a game. I’m hoping to stretch the definition of interactive entertainment to go beyond the game," said Shane Kim, a corporate vice president in charge of Microsoft Game Studios.

With attackers finding new ways to exploit a critical flaw in Internet Explorer, Microsoft has released a patch for the problem, ahead of its next scheduled round of security updates. The patch fixes a critical vulnerability in the way Internet Explorer renders VML (Vector Markup Language) graphics. Hackers had been exploiting the flaw, which also affects some versions of Outlook, for more than a week, and in recent days malicious activity had been on the upswing. The out-of-cycle release is unusual, but not unprecedented.

Microsoft is suing a group of hackers who apparently gained access to the company’s proprietary source code, creating a program that wipes media files clean of file-sharing restrictions. The suit, which Microsoft filed last Friday in a district court in Seattle, Washington, gives only a nickname for the ringleader, "viodentia," who is one of 10 "John Does" whom Microsoft believes are responsible for breaking its Windows Media Digital Rights Management software.

Microsoft will soon announce the release of its Digital Adverting Solutions ad placement tool, which will enable advertisers to more easily reach their target consumers via the Redmond firm’s MSN, Windows Live, Xbox Live and Office Online networks. Digital Advertising Solutions merges Microsoft’s catalogue of worldwide advertising products and services into a single offering, according to the release, and it will help advertisers reach their intended audience through PCs, video game consoles, mobile phones with Internet functionality and other Web-enabled handhelds.

Google has agreed to post a court order against the company on its Belgian Web site, dodging a potential fine of 500,000 euros (US$639,000) per day for not doing so. The court order stemmed from a lawsuit filed by a group of Belgian publications that accused Google of infringing their copyrights by posting articles on its Google News Web site without their permission.

Security vendor Sophos has upgraded its antivirus software to allow system administrators to block the installation of file-sharing, voice over IP (VoIP) and instant-messaging programs, the company announced Wednesday. Enterprises have asked for ways to control what applications end users install, citing concerns over liability, bandwidth consumption and flagging productivity.

A tool that makes it easier to gather and store digital archives has been developed by the National Library of New Zealand and the British Library. As more and more information goes online the race is on to create meaningful digital archives. The Web curator tool automates the process of collecting and storing information.

Cybercrooks are using e-cards that appear to come from a secret admirer in a scam to collect sensitive personal information, a security expert has warned. Data including credit card numbers, online banking credentials, and log-in names and passwords of thousands of individuals from Australia and the U.S. has already been collected in the scam, Roger Thompson, chief technology officer at security software maker Exploit Prevention Labs, said in an interview.

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