Some of Microsoft’s efforts to make Windows Vista its most stable and secure operating system ever could cause instability and new security flaws, according to a Symantec report. Researchers at Cupertino, Calif.-based Symantec examined the new networking technology in recent test releases of Vista, Microsoft’s next major operating system release, according to the report. They found several security bugs and determined that Vista’s networking technology will be less stable, at least in the short run, than Windows XP’s, the report said.

Microsoft on Monday said it has released a slightly updated test version of Windows Vista, but it is not being made broadly available to the consumers who are trying out the new operating system. The software maker said the new version, build 5472, should offer better quality and performance. It is being offered only to some of the masses who are testing the Windows update, including certain businesses, technical testers and members of Microsoft’s MSDN and TechNet developer programs.

Microsoft is readying a fix for a zero-day flaw in PowerPoint that is being exploited in targeted cyberattacks, the company said Monday. A patch is being completed and is scheduled to be released on Aug. 8, Microsoft’s next "Patch Tuesday," the company said in a security advisory. The fix may be released sooner, if that is warranted, Microsoft said.

Advanced Micro Devices is stepping up the pressure on Intel over alleged anticompetitive practices by filing another complaint, this time with German authorities. The latest complaint was filed last week with Germany’s Federal Cartel Office, or Bundeskartellamt. In it, AMD claims that Intel made deals with German retailers that violate the country’s competition laws.

Microsoft said it had filed 26 lawsuits that allege computer dealers sold illegal software, the latest move in the software giant’s effort to crack down on intellectual property piracy. The lawsuits, filed in Colorado, Georgia, Illinois, New Jersey, New York, Ohio and South Carolina, allege that the computer resellers pirated software or installed unlicensed software on computers they sold, Microsoft said. Microsoft gathered evidence for these cases through the use of a program that is similar to a secret shopper concept. As part of its test purchase program, the company buys hardware and software from computer dealers across the country and then tests the software and software components to determine their authenticity.

Timid about diving into the oceanic waters of open-source projects? A few former Microsoft employees have launched a Web site that evaluates open-source projects. The site, Ohloh, is not a reviews site, but instead a directory of open-source software, its co-founder said. The site could appeal to developers who are frustrated by the number of open-source projects that lack clear explanations. Ohloh also seeks to help developers make a build vs. buy decision by offering code analysis.

The International Monetary Fund warned of a jump in the number of fraudulent emails and communications claiming to be from or affiliated with the Washington-based multilateral lender. There has been an apparent spike in such messages recently involving people in the United States targeting recent immigrants and people in cities, an IMF official said. The IMF said U.S. authorities have been informed.

The same week that Microsoft discontinued support for its aged Windows 98 and Windows Millennium operating systems it rolled out thin-client software that turns older PCs into cousins of ones running Windows XP SP2. Once code named "Eiger," the Windows Fundamentals for Legacy PCs software gives nearly-obsolete systems some of Windows XP’s security technologies, notably Windows Firewall and Automatic Updates. Microsoft made it clear that Fundamentals is not a true operating system. Although it’s based on Windows XP Embedded SP2 it "is designed to work with the Microsoft Remote Desktop Connection client or third-party clients such as the Citrix ICA client," the company said on its Web site. Essentially, Fundamentals morphs the PC into a thin-client that runs most of its software from a server.

Following an outcry from corporate customers, Microsoft is removing the Personal Folders add-on feature to Windows that allowed users to create password-protected folders. The feature was introduced as a free download last week. Almost immediately, people raised questions over how businesses would grapple with the ability of individual workers to encrypt their data.

The software industry is learning that virtual machines can cause real headaches, when it comes to figuring out how to charge for their programs. Right now, the computing world is clearly moving into a realm in which a single PC can be running many operating systems at the same time, and businesses want the opportunity to get the benefits of that flexibility, without having to pay over and over again for the same software. In a major shift for Microsoft, the company decided last week to allow business customers to run up to four instances of Windows on the same PC. It’s part of a sea change that has the Redmond, Wash.-based software maker and the rest of the industry headed into unfamiliar waters.