Microsoft on Wednesday issued one of its first Microsoft Security Advisories, responding to reports of a flaw in Windows that could allow denial-of-service attacks. In the advisory, Microsoft says that the problem was fixed with a patch it released in April and that systems running Windows XP with Service Pack 2 (SP2) and that Windows Server with SP1 are not vulnerable.

Microsoft illegally took technology used to link spreadsheet data between two of its programs from a Guatemalan inventor, lawyers said during opening statements at a jury trial that started on Tuesday. Carlos Armando Amado said in a lawsuit that he filed for a patent in 1990 for software that links Microsoft’s Excel program with its Access database application via a single spreadsheet, and that he unsuccessfully tried to sell it to Microsoft two years later. Amado is seeking damages that could exceed $500 million in the lawsuit filed in the U.S. District Court of Central California.

Computer viruses and remote control programs called bots are adopting features from stealthy programs called rootkits to avoid detection, according to researchers at Finnish anti-virus software company F-Secure. New versions of Rbot, a malicious and ubiquitous remote control program, have features copied and pasted from a well known open-source rootkit called FU. The new features make Rbot invisible to system monitoring tools.

Subscribers to SBC Yahoo broadband can now avail themselves of a free online protection service meant to handle worm attacks and other threats. The service, dubbed SBC Yahoo Online Protection, was announced Tuesday. It includes anti-spyware features, antivirus tools, a pop-up blocker and parental controls. The service is designed to let subscribers see the status of their core online protection tools and get notifications with instructions if they need to take a specific action to counter a threat. The service will update itself against the latest virus threats.

RSS aggregator NewsGator Technologies has acquired the company behind FeedDemon, one of the most popular desktop news readers for Windows. Denver-based NewsGator plans to announce its purchase of Bradbury Software LLC on Tuesday during the opening day of the Syndicate Conference here. Terms of the stock and cash deal were not disclosed. The acquisition adds a desktop client to NewsGator’s growing suite of software and services for subscribing to and reading RSS (Really Simple Syndication) feeds.

Microsoft has confirmed that its upcoming version of Internet Explorer will include tabbed browsing, a feature made popular by competitors Opera Software and Firefox. In a Microsoft blog, IE product unit manager Dean Hachamovitch told consumers not to expect too much from tabbed browsing in IE’s beta offering.

GFI is launching a freeware version of GFI Network Server Monitor 6, its network monitoring product that automatically scans networks and servers for failures, and allows administrators to fix and identify issues before users report them. GFI Network Server Monitor can issue alerts by email, pager or SMS and can automatically perform required actions, such as rebooting a machine, restarting a service or running a script. The freeware version, worth US$250, enables these features for three servers, as well as all the additions recently introduced in the latest version of the product. New features include a totally new interface for fast and easy configuration, the capacity to monitor Linux servers, and the ability to check service availability by simulating a real service request (such as an actual terminal server login).

Recognizing a shift in the way people work, Microsoft is putting more emphasis on collaboration in the next version of Office. The Redmond, Wash., software giant has gotten some help in that effort from Groove Networks, the Ray Ozzie-led company that Microsoft acquired earlier this year. One of the first steps in working with colleagues is finding out which co-workers are actually available. In that regard, Microsoft plans to expand its current work on corporate instant messaging and add support for Internet telephony.

Symantec is beefing up its antipiracy efforts with the acquisition of Brisbane, Australia-based software licensing company XtreamLok. The 30-strong company develops advanced antipiracy and activation technologies that enable the licensing of software applications. Both companies refused to reveal details of the acquisition, which closed on Friday.

Even as they move rapidly toward taking action against malicious software programs in the next few weeks, federal lawmakers recognize that any move they make will likely have a limited effect on the huge problem of spyware. Fearing that a pending anti-spyware bill, the Spyblock Act, could inadvertently hamper legitimate downloadable products, software makers are busy lobbying for legislation that would pre-empt myriad state initiatives under way.