ST Report: 8-May-98 #1418

From: Bruce D. Nelson (aa789@cleveland.Freenet.Edu)
Date: 05/13/98-01:18:02 PM Z

From: aa789@cleveland.Freenet.Edu (Bruce D. Nelson)
Subject: ST Report: 8-May-98 #1418
Date: Wed May 13 13:18:02 1998

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05/08/98 STR 1418

                     "Often Imitated, Never Surpassed!"

CPU Industry Report          Ameritech Raises Rates     Borland now INPRISE
USENet Profit Centers?       Adobe Photoshop 5          Runaway Government
NEW Powerbooks Ready         Intuit back with MAC       IMAC to Debut
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    From the Editor's Desk...

    The weather is marvelous, the outdoor grill is doing wonderful
    things and the pool is simply shimmering night and day. Florida is
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    I began an opinion essay last week... that is to run for a few
    weeks with, I'm certain, some very interesting reader input. This
    week, we take a look at Senator Orrin (The Hatchet) Hatch and the
    Florida Attorney General, Robert Butterworth's decision to "look
    into Microsoft and Windows 98".

    Windows 98 is facing a brace or two of politically minded AG and DA
    state offices around the country. Somebody outta tell these geeks
    to run on their own dime and not try to skate into a reelection at
    the cost of the computing industry across this nation. Take a look
    at our essay about unchecked runaway government. It began last week
    and will continue for a few more.



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                   Weekly Happenings in the Computer World

                        Compiled by: Dana P. Jacobson

                         Microsoft Warns Wall Street

        As Microsoft Corp. goes, so goes the economy, was the
        warning implicit in a letter fired off by the company to
        Wall Street last night. Microsoft's letter warned the a
        delay of its Windows 98 operating system, due next month,
        could have "broad, negative consequences not just for
        Microsoft but for the entire PC industry." The letter,
        authored by Microsoft Chief Financial Officer Greg Maffei,
        was sent to about 150 stock analysts, software companies,
        and venture capitalists. It appears to be part of a
        continuing public relations campaign by the company to ward
        off antitrust threats.

        A group of states is expected this week to file suit against
        the company, charging it with violations of anti-trust
        statutes. Last week, a group of PC company executives wrote
        the U.S. Department of Justice on the company's behalf,
        asking the government not to block the release. Maffei said
        in the letter that he wanted to "outline the possible
        financial ramifications of such regulatory action."

        PC companies, software resellers, and independent software
        vendors would all be hurt by a delay, Maffei said. because
        so much effort and money has already been spent in
        anticipation of the software release. However, analysts have
        said that Windows 98 is not expected to be as much of a
        driver in PC sales compared to its precursor, Windows 95.

        Editor Note: Analysts.... "ANAL"-YSTS, sometimes these folks
        really allow their "bias" or, is that "bile" to show! ...rfm

                 Microsoft Letter Urges No Windows 98 Delay

        Microsoft released a letter late on Thursday signed by the
        heads of 26 computer software, hardware and retail outlets
        asking antitrust chief Joel Klein not to delay the release
        of Windows 98. "Government intervention into the launch of
        Windows 98 would endanger what we have all worked for, and
        harm consumers and the economy too," said the letter to
        Klein, who heads the Justice Department antitrust division.

        The Justice Department and 13 state attorneys general are
        considering taking some action against Microsoft before
        Windows 98 is sent to computer makers in mid-May,
        Connecticut Attorney General Richard Blumenthal has said.
        However, it is unclear if the authorities would make any
        attempt to block or alter Windows 98. They might instead
        seek to alter contracts under which Microsoft offers Windows
        98, so computer makers would have more flexibility, sources
        have said.

        The letter's signatories said they were concerned that the
        federal government might try to delay Windows 98 itself. It
        is scheduled for release to the public on June 25. "We --
        and many other companies in the PC industry -- have spent
        millions of dollars developing, marketing and promoting
        products and services that depend on the on-time launch of
        Windows 98," the letters' signatories said.

        They said that any delay would undermine their ability to
        sell their products in the back-to-school season. The letter
        was signed by the presidents or CEO's of such companies as
        AMD, CDW Computer Centers, Compaq Computer, CompUSA, Dell
        Computer, Hewlett-Packard, Intel, Micron Electronics,
        OfficeMax, Packard Bell NEC, Sony Electronics and Symantec.

                Republican Senators Cross Swords On Microsoft

        Senate Judiciary Committee Chairman Orrin Hatch attacked
        Microsoft Friday and was in turn attacked by a senator from
        the company's home state, Slade Gorton, in an escalating
        battle between the two senior Republicans. Gorton called
        remarks about Microsoft by Hatch "nonsensical" and said he
        was "completely outraged" by them. Hatch was not immediately
        available to respond.

        The barbs on Capitol Hill again reflected an increasingly
        tense atmosphere surrounding Microsoft as state attorneys
        general -- and possibly the Justice Department -- are on the
        cusp of filing new legal action against the software giant.
        At issue Friday was a letter to the Justice Department's top
        trustbuster, Joel Klein, written by 26 high-tech executives.
        The letter, released by Microsoft, asked the government to
        permit the release of the Windows 98 operating system
        without delay next month.

        It is unclear that the government would attempt to delay
        Windows 98 in any actions it might bring, analysts said.
        Hatch, of a Utah, said through a spokeswoman the letter made
        it appear "that Microsoft is contacting potential witnesses
        and urging them to voice public opposition to possible law
        enforcement actions." Hatch, his spokeswoman said, found it
        "troubling that the target of an investigation might be
        using its relationship (with computer makers and others) to
        encourage (witnesses) to participate in a public relations
        campaign seemingly designed to frustrate legitimate efforts
        to enforce the laws."

        Gorton responded to his fellow Republican with unusual fury.

        He said through a spokesman he was "completely outraged that
        the chairman of the Judiciary Committee would suggest that
        26 high-tech CEOs should not be able to exercise their First
        Amendment rights and defend themselves against unwarranted
        intervention." And he said that for Hatch to "presume that
        he knows more about the high-tech industry and what they
        need than the 26 CEO'S ... is nonsensical."

        The letter was signed by the presidents or CEOs of such
        companies as Compaq Computer, CompUSA, Dell Computer,
        Hewlett- Packard, Intel, Micron Electronics, OfficeMax,
        Packard Bell NEC and Symantec. Said a Microsoft spokesman:
        "The letter speaks for itself." The spokesman said Hatch may
        have been "misinformed" about the letter. The context for
        the letter is apparent imminent government action against
        Microsoft before Windows 98 is distributed to computer
        makers in mid-May.

        Connecticut Attorney General Richard Blumenthal and others
        said this week that a filing against Microsoft by attorneys
        general and the Justice Department could happen in the next
        week or two.

        The federal and state governments are investigating
        allegations that Microsoft used monopoly power to force its
        products on computer makers and others.

                Gates Met With Justice Lawyers Tuesday Night

        Microsoft chairman Bill Gates met with senior Justice
        Department officials Tuesday night, as a possible new
        antitrust action against the software company loomed, the
        Wall Street Journal reported in today's electronic edition.
        Gates sought the meeting with lead antitrust prosecutor Joel
        Klein to make a personal and direct presentation of what
        would be at stake in any new antitrust suit, the Journal
        said, citing two unnamed people familiar with plans for the
        meeting. The meeting comes as Klein nears a decision on
        whether to pursue a broad Sherman Act antitrust case against

        The suit, if it proceeds, would allege that Microsoft acted
        illegally to protect a monopoly for its ubiquitous Windows
        operating system for computers and to extend that dominance
        into new markets in its attack on Netscape Communications'
        Internet software, the paper said, citing people close to
        the case. Officials from Microsoft and the Justice
        Department refused to comment to the paper.

        Earlier Tuesday, Gates had appeared in New York with
        Microsoft supporters in an effort to rally broad support
        against any government action that might delay the release
        of Windows 98, the latest version of the operating system.

              Microsoft CEO Takes Windows 98 Case To The Public

        Microsoft Chairman Bill Gates, whose company is the target
        of several antitrust investigations, warned that any
        government action to block release of its Windows 98
        operating system software could hurt the U.S. economy and
        cost jobs. Flanked by a phalanx of computer industry
        executives, Gates warned such a move against the newest
        version of the company's flagship software would hamper
        innovation and could have a devastating effect in and beyond
        the computer industry.

        "Any government action that would derail or delay Windows 98
        would hurt the American economy and would cost American
        jobs, " Gates said at a "rally" organized by Microsoft at
        New York City's Equitable Building. "The effect would be
        profound and would ripple through the economy." The speech
        was Gates' most direct response to what he called the
        "serious consideration" government attorneys are giving to a
        plan to delay Windows 98.

        To buttress his case, Gates turned to several top industry
        executives, including Eckhard Pfeiffer, president of Compaq
        Computer, the world's biggest personal computer maker.
        Pfeiffer said Compaq and the entire PC industry had "a large
        stake in the introduction and success of Windows 98," a
        product many industry executive hope will help spark new
        life into recently sluggish sales growth.

        Pfeiffer and computer retailer CompUSA Chief Executive Jim
        Halpin also noted that many companies have already sunk
        millions of dollars into early marketing efforts linked to
        the June 25 scheduled release of Windows 98. But the display
        of solidarity was immediately seized on by opponents who
        assembled outside to argue the affair was more evidence of
        Microsoft's grip on the computer industry.

        "When you are that reliant on a company that has a
        stranglehold, it's not surprising that you would go along,"
        said Ed Black, president of the Computer & Communications
        Industry Association, a Washington-based industry lobby
        representing Microsoft's foes. Connecticut Attorney General
        Richard Blumenthal echoed those sentiments in a statement
        released after the rally.

        Blumenthal, who last week said he and 12 other state
        attorneys general were "on the cusp" of bringing an
        antitrust lawsuit against Microsoft, declined to say on
        Tuesday exactly what action the states were considering.
        However, he did say the argument that Windows 98 is
        "absolutely essential" to the PC industry would "seem to
        support the view that Microsoft has excessive dominance that
        constitutes a stranglehold."

        A federal lawsuit against Microsoft is also a possibility,
        and some believe the states and federal government could
        move jointly against the Redmond, Wash.-based software
        giant. In seeking to rebut the argument of his company's
        power over the marketplace, Gates steered the focus
        repeatedly to the topic of innovation rather than focus on
        the topic of whether or not Microsoft enjoyed monopoly

        A demonstration of the software that preceded Gates' remarks
        -- and which went without a hitch, in contrast to a recent
        crash-plagued demo handled by Gates himself in Chicago --
        highlighted some of the new Windows features designed to
        address the needs of disabled customers. One such feature
        allows users to magnify parts of the screen for easy
        reading, for example.

        Microsoft also introduced Gregory Mankiw, a Harvard
        University economics professor, who argued against
        government involvement in the computer industry. "The
        computer industry is not broke, and the government should
        not try to fix it," Mankiw said, adding intervention would
        be like "throwing sand in the gears" of progress.

              Borland To Change Name, Sets New Product Strategy

        Borland International, one of the most storied software
        companies, said it plans to change its name to Inprise to
        reflect a new corporate strategy and product focus. Borland
        -- once the third-biggest personal computer software company
        in the world and a serious threat to Microsoft -- said it
        now would focus its business on so-called "middleware"
        software products, which act as translators between
        different types of hardware and business software.

        Borland will introduce several products later this year that
        the company said would make it easier for corporate computer
        networks to share vital business information. "The name
        Inprise is a way to identify ourselves with new markets, a
        new customer base and a new strategy," said Del Yocam,
        Borland's chief executive and chairman. "This is a new
        company." The company's name will be changed to Inprise on
        June 5, pending shareholder approval. It also will get a new
        stock symbol, "INPR," on the Nasdaq market.

        Borland, based in Scotts Valley, Calif., is best known for
        its computer programming languages and tools. Its software
        products help professional programmers write other software.
        In the early 1980s it grew rapidly and dominated the
        software development tools market, once Microsoft's main
        cash cow. It was such a threat that it prompted Microsoft
        Chairman Bill Gates to write an infamous memo directing his
        troops "to kill Philippe," referring to Borland founder
        Philippe Kahn.

        But Borland stumbled badly in the early 1990s by making
        several unwieldy acquisitions. Microsoft also countered
        Borland's gains by slashing prices of its own development
        tools, forcing Borland to follow. Until last year, Borland
        had been reporting plummeting sales and big losses for
        several years. To find new sources of revenue, Borland has
        acquired smaller software companies that specialize in
        middleware, a $2 billion software market that is growing at
        about 40 percent a year, according to market researcher
        International Data Corp.

        "Borland is a great tools company, but they had been stuck
        there" because of competition with Microsoft, said Ted
        Schadler, senior analyst at market researcher Forrester
        Research. "The middleware market is growing so quickly that
        they have good prospects." Yocam said he planned to double
        his company's revenue in three years to about $500 million a
        year, with at least 50 percent of sales coming from its new
        product lines. The company also said it established a
        services unit that will help big companies write software
        based on its new products.

                   Ameritech Raises Internet Access Rates

        Ameritech said today effective June 1 it will raise the
        price of unlimited access to the Internet via its service, with the new monthly rate increased
        to $21.95 from $19.95. The annual price for unlimited access
        will rise to $213 -- equivalent to $17.75 a month -- from
        $189. The basic monthly rate of $8.95 for 10 hours of usage
        will remain unchanged, Ameritech said.

        Prices for Ameritech's unlimited access using ADSL
        (asymmetric digital subscriber line) or ISDN (integrated
        services digital network) technology remain unchanged at
        $49.95 a month. Ameritech joins other Internet Service
        Providers in raising rates or changing price programs.
        America Online, also raised its monthly rate to $21.95 from
        $19.95 in February. "We have to keep up with the
        marketplace, but really we've invested a great deal in our
        Internet network," said Ameritech spokesman Geoff Potter.

        Ameritech said it will increase its investment in its
        Internet access network by 66 percent over 1997, to upgrade
        its infrastructure in order to keep up with increased usage.
        Potter said the company does not disclose actual investment
        numbers. The number of subscribers has doubled
        in the past six months, the company said, and average
        session length per customer has grown by 30 percent.

        In addition, Ameritech has invested in 24-hour-a-day
        customer service and technical support for its Internet
        access customers. The company said it increased its service
        center staff by about 50 percent over the past six months.

              Digital Copyright Bill Moves Ahead In U.S. Senate

        Legislation to protect copyright material on the Internet
        passed the Senate Judiciary Committee after a series of
        amendments soothed groups that had threatened to block the
        measure. The Digital Millennium Copyright Act would
        implement two international treaties adopted in 1996 by the
        World Intellectual Property Organization to protect
        everything from software to movies and music available

        Once the implementing legislation is adopted, the Senate can
        proceed to formally ratify the treaties. Committee Chairman
        Orrin Hatch said after the vote that he would move for swift
        passage by the full Senate. A similar bill is pending in the
        House of Representatives but that version lacks many of the
        compromises incorporated into the Senate bill. "It is
        essential to protecting American creativity abroad," the
        Utah Republican said.

        Opposition to the bill had centered around provisions making
        online service providers liable for copyright infringements
        and a section prohibiting disabling of hardware or software
        anti-copying protection. But new language added to the bill
        pleased high-tech groups that had opposed earlier versions.
        "The current Senate language strikes the proper balance,"
        said Rhett Dawson, president of the Information Technology
        Industry Council. Gary Klein, vice president at the
        Electronic Industries Alliance, said that while the
        amendments appeared to rectify flaws in the bill, his group
        would need to see language from the committee in a report
        that will accompany the bill.

        "If the report language is satisfactory, we have agreed not
        to actively oppose the bill," he said. Sen. Pat Leahy,
        Democrat of Vermont, and Sen. John Ashcroft, Republican of
        Missouri, worked to draft the revised online liability
        section. The amended provision included four "safe harbors"
        granting online service providers immunity from liability
        for copyright infringements by others over their networks.

               Trying to Turn Usenet Sites Into Profit Centers

        If Deja News and Talkway are right, there's a big new
        revenue opportunity in old communities. The two companies
        hope that by opening up the often-arcane world of Usenet
        computer bulletin board groups to the Web, they'll be able
        to find profits where other community-builders have found
        only red ink.

        "The hardest thing about creating an online community is
        building critical mass," says Rich Simoni, Talkway's vice
        president of technology. Next month, Talkway
        ( will launch a Web-based gateway to
        15,000 of the most active Usenet groups, each of which has
        its own built-in constituency. Deja News ( based in Austin,
        Texas, was the first company to identify the commercial
        potential of colonizing the 20-year-old Usenet system of
        Internet message posting. It set up a searchable archive of
        Usenet posts in 1995 and has been adding features rapidly,
        including the ability to customize a view of Usenet, and,
        this week, spam-free email from WhoWhere.

        But the niche that Talkway and Deja News have identified is
        a small one, and analysts aren't sure of its potential
        profitability. "It's a fairly specialized space," observes
        Chris Charron at Forrester Research. "There's not room for
        that many players, and it's pretty dependent on advertising
        and commerce deals. But I do give both companies points for
        making Usenet easier to use."

        Sunnyvale, California-based Talkway is optimistic about
        selling highly targeted ads around Usenet content for
        premium rates-up to $80 per 1,000 ad impressions. And it has
        signed commerce deals with companies like Barnes & Noble and
        Cyberian Outpost. Users of the Talkway service will see book
        recommendations, for example, that are tied to the topics of
        the groups they participate in.

        Talkway offers Java and HTML Web language versions of a
        newsreader that lets users easily participate in Usenet.
        (Talkway is still beta-testing its product.) It's designed,
        according to marketing director Carlos Tribino, to be a sort
        of Usenet Yahoo, guiding users to a Seinfeld group, for
        example, without requiring them to know that the group's
        official name is From there, users can post
        messages, read messages posted by others, and even rate the
        posts they read.

        With Talkway, you can label a post as "spam," "adult,"
        "flame," or "thumbs up," to help guide fellow users. And
        Tribino points out that Talkway uses Usenet's native NNTP
        protocol, unlike Deja News, so posts show up faster on the
        system. Deja News is enjoying its first-mover advantage,
        though. Marketing vice president David Wilson says his
        company has already attracted 4.5 million users, and plans
        to continue adding new features rapidly. Deja News also
        plans to add non-Usenet content to its database.

        "You can expect us to pick up and aggregate more and more
        discussion sources," says Wilson. "Usenet is not going to be
        the only source of discussion to Deja News." And he doesn't
        sound cowed by Talkway's imminent entry into his niche.
        "They will be some sort of competition," Wilson says
        dubiously, before scoffing at Talkway's mention of $80
        cost-per-thousand ad rates: "That's really stretching the
        upper bounds." He added that Deja News would continue to
        rely on banner advertising for the bulk of its revenue, and
        expected to be profitable soon. Both Deja News and Talkway
        are privately held companies.

        For its part, Talkway doesn't think it will be competing
        head-to-head with Deja News once it launches. "We see our
        service as different from Deja News," explains Tribino.
        "Talkway is about real-time participation, not searching
        Usenet. We have a great search tool, but it's only a means
        to an end. That end is to make it easy and friendly for
        people to participate in Usenet."

        Charron at Forrester sees that as a noble goal. "As the Web
        audience becomes more diverse, in terms of technical
        expertise and background, they'll need a simpler interface
        to Usenet, and both of these companies provide that," he
        says. But like all advertising-dependent companies, Charron
        expects Talkway and Deja News to stagger-rather than
        stride-toward profitability.

        "I don't think opening up Usenet is going to be like
        striking gold," he says. "It's difficult to make money
        through advertising, and these companies will have to endure
        some red ink for a while." They'll also have to learn how to
        introduce ads and sponsorships to Usenet without offending
        the sensibilities of a traditionally anti-advertising
        populace. Marc Smith, a sociologist at the University of
        California, Los Angeles who studies Usenet culture, says
        that Deja News and Talkway aren't the first companies to
        make Usenet more accessible. The biggest influx of new
        users, according to Smith, happened when America Online
        granted Usenet access to its subscriber base. "That was the
        biggest tsunami ever to hit Usenet," Smith says.

        But he applauds the introduction of more sophisticated tools
        for searching and participating in Usenet. "Tools like this
        are great," Smith says. "Usenet would not go away without a
        Web front-end, but the merger of the Web and Usenet bodes
        well for both. The Web needs Usenet for content."

        Deja News Has Plan to Bolster "Spam" Defenses

        In response to customer complaints of spammers "harvesting"
        private email addresses from its postings, the Web-based
        Usenet service Deja News is providing free buffer email
        accounts to its users. By creating Deja News-specific mail
        accounts, the service says it can filter spam using those
        addresses. Since last December, the service has been
        filtering spam from Usenet postings - which can be as much
        as two-thirds of postings, Deja News says -- and will apply
        similar filters to the new email service.

        The hope, said David Wilson, Deja News vice president of
        marketing, is that Usenet posters will no longer exclude
        their email address or use a mangled address to fend off
        spammers. And "if spam does get through, at least it won't
        get through to their permanent email address," Wilson said.
        He emphasized that though the free email can be used for
        general purpose correspondence, the move is not meant as an
        entry into the ever-expanding free email market.

                          Disney's On the Web Prowl

        Fee fi fo fum. Look out Web, here Disney comes. The Walt
        Disney Co. is making a big play for the Internet, one that
        could push aside already established Internet brands and
        lead to more subscription-based sites on the Web. Though
        it's been criticized for being slow to embrace the Internet
        at first, lately the company's been marching into cyberspace
        with gusto. Thursday, Disney signed a deal to purchase the
        final stake in Starwave, a company that manages Web traffic
        and runs sites such as ESPN and ABC
        And on Tuesday, CEO Michael Eisner said Disney plans to
        partner with a company to become a gateway to the Web.

        "That's definitely in the future," said Diane Passarelli, a
        spokeswoman for the Disney Online division, though she
        declined to elaborate. "We want to make it easier for people
        to go online, to get services they now get from other
        outlets." Disney already holds a gateway position in the
        television arena through its ownership of Capitol Cities
        Communications Inc., which runs the ABC network.

        A TV-like Web And some analysts think the Web of the future
        will resemble television more closely, with only a handful
        of network-like gateways where people go first, to get
        things like news and weather before going off to roam the
        Net. "There will be two or three places where people start
        at on the Web," Alexis DePlanque, senior research analyst at
        Meta Group, said. "If you can lock in mindshare, then you
        can leverage that to make money later."

        Indeed, portals are power -- or at least they have the
        potential to be -- as more and more companies are
        discovering. Heavyweights such as Microsoft Corp. and
        Netscape Communications Corp. already have announced plans
        to provide their own gateways, from which they can direct
        traffic to their other Web sites. In addition to its
        proposed gateway, Disney also can direct people online
        through its traditional entertainment ventures, theme parks,
        and networks -- and sell its product on the Internet.

        "It'll attract a lot of mainstream people to the Web," Zona
        Research Inc. analyst Jim Balderston said. "Who knows better
        than Disney how to leverage content? These guys are masters
        at cross-promotion." Show Mickey the money Disney's
        increased move into the online arena also could spark more
        subscription-based sites. Already the company runs Disney's
        Daily Blast, one of the only kids sites to charge for

        And the company eventually could leverage more of its
        authentic Disney characters -- as well as sought-after sites
        such as SportsZone and ABC News -- into cybercash. The
        company's current online ventures include Disney Daily
        Blast, the Starwave ventures, and -- a site
        launched in 1996, where the company updates viewers on
        Disney news, sells products, and entertains kids with
        activities such as chats with Jiminy Cricket. The company's
        online ventures make up the most-visited conglomeration of
        mainstream sites on the Web.

        But until recently, Disney has waited on the sidelines while
        smaller Internet-based firms -- such as Yahoo!, Infoseek and
        AOL -- made major inroads into the Web. That's not an
        unusual scenario in cyberspace. "Once they cut the path and
        take all the lumps and get bit by the alligators and snakes,
        guess who's going to follow them up the river? Companies
        like Disney," Balderston said. Now that Disney has
        discovered the Web is an environment where companies can
        survive, and even thrive, it's making it a priority.

        A guessing game CEO Eisner's announcement that it would soon
        partner with a major Internet company has sparked a guessing
        game in the industry. Scoring Disney would be a major coup
        for any up-and-coming Internet company because of the
        company's high-profile brand name. And it could spell
        trouble for those left out of the deal. "Really, the
        question is not what can Disney offer these companies? But
        what are these companies going to offer Disney?" Meta
        Group's DePlanque said.

        Potential partners include: Infoseek, a company that could
        provide Disney with much-coveted searching technology;
        Yahoo!, which would give Disney plenty of eyeballs; or even
        Netscape, which recently announced its own plans to become
        more consumer-focused even as its strikes its own deals with
        major search companies.

        But others aren't so sure that Disney has what it takes.
        Viacom already has made a strong play in the children's
        online market with its Nickelodeon unit, teaming up with AOL
        for the America Online Kids Only Channel. One source at AOL
        said Disney needs to buy a large company, not just partner
        with one, if it wants to become a major player.

                  Apple To Launch New PowerBooks This Week

        Apple Computer is expected to introduce a new line of
        PowerBook computers at a press conference Wednesday, in a
        much-needed refreshment of its current notebook computer
        line, analysts said. Apple will introduce new Powerbooks
        designed around its G3 processor - code-named Wall Street --
        with a wide range of options and prices expected to start
        around $2,250 for the lowest-cost model.

        The systems will also include the fastest PowerBook to date,
        with a 292 megahertz PowerPC chip. "They haven't refreshed
        them since November," said Lou Mazzucchelli, a Gerard Klauer
        Mattison & Co analyst. There could be all sorts of other
        stuff too," Mazzucchelli said, adding that Apple could also
        unveil another online store, but one targeted specifically
        to the education market.

        "It would allow teachers and school systems to build to
        order (Apple products) on the Web," he said. Apple has had
        some success selling Macintoshes and other products over the
        Internet at its Apple Online store since November. "It will
        stem the defection, certainly," Mazzucchelli said of Apple's
        declining share of the education market.

        A spokesman for the Cupertino, Calif.-based company declined
        to comment on unannounced products. Apple may also provide
        more details about its acquisition on Monday of some video
        editing technology from Macromedia, which analysts said they
        believe is "Final Cut," Macromedia's video editing suite.

        Apple did not provide any details in a statement late Monday
        on the acquisition, except to say that it acquired
        technology from Macromedia to enhance future versions of its
        QuickTime multimedia content authoring and playback
        software. Daniel Kunstler, a J.P. Morgan analyst, said Apple
        could also provide some details on its anticipated consumer
        products for later this year, but he added that he is only

                 Intuit Says Mac Quicken Version Born Again

        Intuit Tuesday announced it would continue to support and
        develop Quicken for the Macintosh, reversing an announcement
        made just weeks ago. In April, Intuit stunned Mac loyalists
        and fueled the speculation of Apple doomsayers when it said
        it would discontinue development for the Mac of the world's
        most popular personal finance software. Intuit credited the
        reversal to a dazzling presentation by Apple execs: "Now,
        having seen what Apple is planning for consumer products,
        we're thrilled to announce renewed support for the
        Macintosh," said Intuit senior vice president Mark Goines in
        a statement. The announcement bolsters the credibility of
        Apple interim CEO Steve Jobs, who two weeks ago assured
        Apple shareholders that he would bring Intuit back into the
        fold. "We didn't get into Intuit's face and tell them how we
        plan to re-enter the consumer market," he said, before
        making assurances that he would do just that.

                               PDA Sales Boom

        While there has been a lot of talk about handheld IT
        products, both computers and PDAs, up until Q4, the market
        was not that larger nor robust. However, since that time
        sales volumes have continued to grow, not by percentages,
        but multiples over prior year numbers. This astounding
        growth has created a true business for the companies that
        participate, and one in particular.

        Looking at sales growth, most of our InfoBead Insider
        indices look at growth rates between 10 and 40 percent,
        however in the most recent quarter, sales of handhelds were
        400 percent of Q1 1997 volumes! This shows that the market
        is still in an upward vortex, and I don't expect the
        purchase index to drop under 2.0 until Q4 of this year at
        the latest.

        What's also really interesting in the handheld market, is
        that vendor positioning is not behaving as it normally does
        in such a dynamic market. Usually in very fast growth
        markets, share tends to be somewhat spread out among a
        number of vendors. Sometimes it's a case of lack of
        manufacturing capacity for a single firm, and sometimes it's
        the inevitable product leapfrogs that occur as more and more
        vendors are drawn by one of the few IT markets, where 100
        percent growth is a disaster, not a blessing.

        But that's not the case here. 3COM/USR's Pilot line has
        consistently had share at or near 50 percent of the market.
        In point of fact, the company has been above 50 percent for
        the last four months running. Only Sharp has shown the
        ability to challenge, and that happened only in the month of
        February. Other than that, no competitor has been able to
        consistently drive share above 15 percent for more than a
        month or two. Is this another Microsoft? Will Pilot become
        to PDAs what Kleenex are to Tissues? Only time will tell,
        and you can bet that I'll be watching how this part of the
        business shapes up at InfoBead Insider.

         Oscar Winner Titanic's Special Effects Dramatize Sizzle of
                                 Alpha Power
                           For Business Computing

        Digital Overshadows SGI's Hollywood Presence
        They may not realize it, but the millions of movie-goers
        thrilled by Titanic, which captured the Oscar for Best
        Special Effects, have seen the future of special effects
        wizardry. Further, Titanic's jaw-dropping special effects
        provide compelling evidence of a dramatic shift in
        Hollywood's choice of computing tools, on which
        audience-appealing cinematic effects increasingly depend.
        Titanic, history's biggest box office hit and winner of 11
        Oscars, vividly illustrates how Digital Equipment
        Corporation), Maynard, Mass., is quickly becoming the first
        vendor to successfully challenge Silicon Graphics (SGI) in
        the technology-hungry computer generated imaging (CGI)
        market. Many of the now-famous "How did they do that?!"
        special effects were made possible by image rendering and
        film compositing solutions based on Digital's 64-bit Alpha
        computing platform.

        "Digital congratulates everyone associated with Titanic,"
        said Jesse Lipcon, Digital vice president, UNIX and OpenVMS
        Systems Business Unit. "It's fitting the film that smashed
        all-time box office records should showcase the blockbuster
        performance of Digital's Alpha technology. Titanic
        demonstrates clearly the performance and reliability
        advantages of our 64-bit solutions." Ironically, in an era
        when audiences have come to equate special effects with
        images such as super-realistic aliens and human morphing,
        Titanic may for the first time call attention to what many
        see as the next wave of special effects -- those the viewer
        can't perceive, such as Titanic passengers strolling on
        deck, gorgeous sunset backgrounds, and the din of the engine
        room. These and other "invisible" special effects in Titanic
        were created using some of the world's most powerful
        computing applications.

        Lipcon added, "Hollywood is just one of the many places
        showcasing Digital Alpha systems. Look behind the scenes and
        you'll find Alpha speeding complex data mining, powering
        compute-intensive data modeling, and driving many of the
        world's largest and most popular Websites." For example, the
        same level of performance Alpha delivers to
        technology-hungry CGI creators also enables corporate
        managers to make split-second business decisions based on
        "mining" of competitive gems from massive, diverse data

        To meet its film debut deadline, Hollywood's Digital Domain
        studios, which oversaw the entire CGI production for
        Titanic, came to Digital. "When you look at the grand scenes
        of the ship in Titanic, you're not seeing just a picture
        filmed by a camera - you're also seeing hundreds of
        gigabytes of data," said Scott Ross, president and CEO of
        Digital Domain. "Without the Alpha systems, we knew that
        compositing the frames would take far too much time. In
        film-making, as in any other business, time is money, and
        that's why we chose the Alpha platform."

        The computing power of Alpha is enabling CGI staffs across
        Hollywood and beyond to be more creative and work faster and
        at lower cost than ever before. In addition to Digital
        Domain, creator of Titanic, Terminator 2-3D, Apollo 13 and
        many other feature films, such studios as Kodak Cinesite
        (Sphere, Jerry Maguire, Space Jam, Batman & Robin) and Santa
        Barbara Studios (An American Werewolf in Paris) are moving
        rapidly to exploit the performance advantages of Alpha for
        some of computing's most taxing applications. Other studios
        include Threshold Entertainment, Area 51, indimension3, Mass
        Illusions, and Netter Digital, which is producing all the
        new episodes of the TV series Babylon5 with special effects
        powered by Alpha.

        Building a ship the size of Titanic is a massive
        undertaking, whether on a sound stage or on a computer. To
        render the visual effects of the ship and its thousands of
        passengers during Titanic post-production, Alpha-based
        workstations and server systems crunched through terabytes
        of data. Digital Domain relied on the power of more than 200
        Alpha processors running 24 hours a day for two straight
        months, averaging an astounding 800 million computer
        instructions per second.

        Looking to the future, the advent of new media, such as
        high-definition television, or HDTV, and the
        "digitalization" of the broadcast studio, requires a level
        of computing performance available today only from Alpha.
        For example, many broadcasters are implementing the "virtual
        set," eliminating the need for expensive studio sets for
        programs such as sports analysis programs, talk shows, and
        other productions. By rendering a backdrop in real- time,
        solving parallax and "front/back" issues with a computer,
        they can generate electronically a very realistic,
        economical, easily altered "set."

        Only Digital offers both UNIX and Windows NT rendering
        solutions. Digital is the only player in the plug-and-play
        rendering market of SGI compatible UNIX systems that also
        offers a Windows NT solution using the same system.
        Customers can purchase a Digital UNIX Alpha solution today
        knowing that, if they decide to implement a Windows NT
        rendering solution in the future, the same Alpha hardware
        can run Windows NT applications.

        Software providers such as Softimage, Discreet Logic,
        Silicon Grail, Cinema Graphics, Eyeon Software, Lambsoft,
        Modern Cartoons, and others are porting to Alpha systems on
        Digital UNIX or Windows NT for the power and value Alpha
        solutions give their customers. Digital Equipment
        Corporation, recognized for product and service excellence,
        is a leading supplier of high-performance, Web-based
        computing solutions that help enterprises compete in the
        global marketplace. Digital gives its customers a winning
        Internet advantage through a comprehensive portfolio of
        Internet solutions based on award-winning systems, advanced
        networking infrastructure, innovative software, and industry
        applications - including those from business partners. The
        expertise and experience of Digital employees help customers
        plan, design, implement, manage and support Internet
        solutions in countries throughout the world. For the latest
        company information, visit Digital on the World Wide Web at: and/or

                 The e-home: It's the Shelter of the Future

        The home of the future will be packed with cool bells and
        whistles, many of which will be nestled tidily behind walls
        and powered by high-bandwidth wires and souped-up circuit
        boards. The future promises faster Internet links, networked
        computers that talk with intelligent appliances,
        conveniences, energy savers and devices to keep family
        members entertained and connected, experts say.

        Here's a glimpse at some features of the home of the future,
        coming to a home near you in an estimated three to seven
        years: *Virtual birthday parties with faraway relatives and
        friends would be possible courtesy a TV video conferencing
        system connected to the Internet via high-speed wires.
        *Intelligent appliances would be able to communicate with
        the home computer network if its task is complete, or if the
        appliance malfunctions. For instance, the basement clothes
        dryer would be able to alert the person watching an upstairs
        PC or TV that the clothes are dry. Sensors would detect an
        extra dirty wash load, and compensate with added cleaning

        *Lights and audio systems would be controlled by a central
        touchpad, and also would be adjusted by a remote control.
        The home's control center would be alerted when owners leave
        the house, automatically reducing the thermostat. *The
        control center would be able to communicate with outside
        entities such as the National Weather Service, so that when
        rain is forecast, the homeowner would be alerted and the
        sprinkler system could be turned off and the windows closed

        Here it comes "We're envisioning home automation, home
        monitoring and security, inventory and shopping aids, and
        intelligent books, games and appliances," said Ken Lim,
        senior futurist for CyberMedia Convergence Consulting in
        Cupertino, Calif. Lim next month will release his
        "Interactive Opportunities in the Home, 2001" research about
        the home of the future. Technology and appliance companies,
        as well as such universities as Massachusetts Institute of
        Technology, are studying the possibilities and are working
        with manufacturers to make the house of the future a

        Some technologies, such as speedy networks and high-tech
        entertainment systems, are now being installed in high-end
        new constructions. In the future, even median-income homes
        will have their own ethernets, with connections for
        computers in the kitchen, the home office, children's
        bedrooms and the family room. The kitchen computer could
        bring up handy dinner recipes after the cook types in
        available ingredients, while the student can seek homework
        help over the Internet.

        Give me more time "I want computing to take the tedium out
        of my day and leave me with the good stuff -- like more time
        for my family or for entertainment," said Suze Woolf, group
        program manager for Microsoft's home of the future
        prototyping team. Microsoft displayed futuristic vignettes
        at Comdex and Windows World last week in Chicago. High-speed
        lines such as 1394 or coaxial will be wired to universal
        outlets throughout the house. Some companies are working on
        retrofitting copper "twisted-pair" wire for high-bandwidth
        usage, or developing wireless networks using radio
        frequencies, thereby eliminating the need for rewiring an
        existing house.

        Beyond high-speed local-area networks, or LANs, those
        developing futuristic plans think the next step is to
        develop user interfaces between intelligent appliances and
        the networks. "That's farther out in the future than
        networks," Woolf said. An example might be using a "low
        footprint" operating system such as Windows CE, which might
        connect the network to an intelligent washing machine. When
        a load of wash is "out of balance," a message may appear on
        the computer network, alerting the homeowner.

        Refrigerators can't crash Lim warns that consumers won't
        tolerate computer crashes that disable the household. "I
        think PCs are incapable of doing (a home network). They are
        not robust enough to handle multiple elements," Lim said.
        "The network needs to be bulletproof -- as reliable as a
        refrigerator or phone. How often do they crash?" Bringing
        intelligent appliances and other technologies mainstream are
        three to seven years down the road, according to experts.
        While high-tech wiring and technologies are currently only
        afforded by the rich, systems for the future will be
        targeted to middle-income households and will be
        conventional installations for new home construction.

        A home multimedia system, which combines DVD, Web browsing,
        gaming, and high-speed data and telephone capabilities is
        well on its way to manufacturing this summer, according to
        Jeff Minushkin, president of Multimedia Convergence Corp., a
        Chicago-based technology firm. MCC is developing the TV
        set-top device for a high-profile manufacturer, to be
        disclosed next month, and will retail for less than $500, he
        said. Buying separate WebTV boxes, gaming devices and DVD
        players today would cost more than $1,000. Screen phones in
        1999 Coming within 12 to 18 months are video screen phones,
        which would sell for $500 initially and $300 by Christmas of
        1999, Lim said. The screens would be 3x5 or 6x9 inches.
        "We're headed in a lot of directions for the home of the
        future," Lim said. "What you'll need is one device to handle
        the multiple elements. A simple and cheap network is

        MIT Is Planning House of the Future

        Massachusetts Institute of Technology is teaming up with
        technology industry giants to map out the home of the
        future. In their sites they envision five to seven prototype
        homes to be built worldwide by 2001, which will shape the
        future of architecture, building materials and home-based
        technology. MIT, which will make public next month its
        partnerships with key companies such as Microsoft Corp.
        (MSFT), Intel Corp. (INTC), Siemens, Procter.

                A T T E N T I O N ** A T T E N T I O N ** A T T E N T I O N


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                A T T E N T I O N ** A T T E N T I O N ** A T T E N T I O N

EDUPAGE STR Focus Keeping the users informed

  [Image]                                      Edupage


  Don't Block Windows 98, Say Vendors           Distance Education Threatens Small Regional
                                                Colleges Acquires Movie Site                Power Companies Want To Be Internet

  Internet Use On Company Time                  CIOs Say E-Mail Is Key To Future Business

  Kodak Teams With Intel For Digital Imaging    Disney Buys Starwave

  Another FAQ On Essay Contest Eligibility      Congress Authorizes Internet Fee Collection

  Senate Committee Moves Forward On Online      FCC To Scrutinize School Wiring Funds
  (c) Bill

  Miller Publishing Gets Wired                  Excite Inks Deal With Netscape

  Lycos Links With AT&T                         Economist Predicts Y2K Problem Will Cause

  @Home To Sell Pay-Per-Play CD-ROMs            IMS Standards For Online Course Materials

  Intuit Reverses Decision On Mac Quicken       RealNetworks Denies Its Audio Streams Can
                                                Be Recorded

  Intel To Build Research Facility In China     Dell, Cisco And U S West Team Up On PCs
                                                With Speedy Modems

  Compaq Plans Job Cuts                         Apple iMacs, New PowerBooks Hit The Market

  AT&T Gets Excited Too

                             DON'T BLOCK WINDOWS 98, SAY VENDORS

Twenty-six computer industry executives, including the chairmen of Intel Corp., Micron
Electronics, Dell Computer, Compaq Computer and Hewlett-Packard, have signed a joint letter
urging the Department of Justice not to block the planned release of Microsoft's Windows 98
operating system. "Interfering with the release of Windows 98 would drag down the entire
industry's efforts to deliver value to customers and returns to shareholders," said the
letter. The executives were careful to point out that they weren't expressing "any opinion
on the merits of the investigation of Microsoft." The upgrade is expected to be shipped to
computer makers in mid-May and hit retail shelves on June 25. "The bottom line is, no
computer manufacturer can afford to harm their relationship with Microsoft," says the
president of the Software Publishers Association. "When Microsoft calls and asks them to
write a letter to Justice, they're hard-pressed not to." (Los Angeles Times 1 May 98)


Small regional colleges are seeing a lucrative source of income - continuing education
courses that fill otherwise empty classrooms in the evening -- threatened by distance
learning programs offered by larger, more well-known research universities. "The question
is, How much more depth is there to the graduate and retraining market for everyone to
succeed?" says the president of the Pennsylvania Association of Independent Colleges and
Universities. "Private colleges have certain advantages -- one being that they have been in
a particular market for years. But a small institution, all by itself, can never compete
with the range of courses and convenient times that Penn State can offer, all with the
support of state taxpayers." Meanwhile, Penn State's associate VP for distance education
says Penn has no desire to "replicate well-established programs" offered by small schools
in its state. "If we took that approach, students would pick the local institution over
us." The university is planning to offer some 25 certificate programs via distance
education with an enrollment of 5,000 students by 2003. (Chronicle of Higher Education 1
May 98)

                               AMAZON.COM ACQUIRES MOVIE SITE has acquired three Internet businesses: the Internet Movie Database, which it
plans to use as its initial entry point into online video sales, and European book
retailers Bookpages and Telebook, which it will use to crack the European book market. Last
week, the company announced it was developing an online music store to meet the demand for
compact disks. (Financial Times 27 Apr 98)


Power companies are eyeing the Internet, hoping for a chance to use their long-held
physical rights of way to deliver telecommunications services. Thursday, Interpath
Communications, a subsidiary of Carolina Power & Light, announced it would merge with
TriNet Services, a consulting and Internet development firm. "We are seeing companies with
rights of way use them for telecommunications purposes in the Internet space," says an
industry consultant. "Carolina broadened themselves from being a bandwidth or pipe, to
being a provider of professional services. CP&L is following the lead of companies such as
The Williams Co., which used its massive gas pipeline to string the fiber network that was
later sold to WorldCom as WilTel. (Computer Reseller News 30 Apr 98)

                                INTERNET USE ON COMPANY TIME

A survey by Elron Software, developers of a program that allows companies to track the hits
to every Web site visited by employees, found that 68% of workers logged on to pornographic
sites at work, far more than other non-work-related categories such as news gambling and
sports. Elron also found that just like subscribers to Playboy who claim they only read the
articles, most employees say they use the Internet for business research. News sites were
second at 30%, even though some employees need access to these sites for their work.
(Toronto Star 30 Apr 98)

                          CIOs SAY E-MAIL IS KEY TO FUTURE BUSINESS

"E-mail used to be a convenience computing tool," said the CIO of engineering firm Fluor.
"Now interoperability is the theme; it's critical for messaging in the millennium." Other
panelists at the Electronic Messaging Association conference last week agreed, pointing out
that centralized directories would become more critical for electronic commerce, security
and single sign-on. But before that happens there are several problems to solve, they
agreed, including garbled attachments, gateway management tools, authentication and error
messages. "If the error messages were in plain English, end users could figure them out
without having to call the help desk," said the U.S. Agriculture Dept.'s Anne Thomson Reed,
chairwoman of the messaging interoperability committee for the Federal CIO Council.
(InternetWeek 30 Apr 98)


Eastman Kodak has cut a deal with Intel Corp. to jointly develop and market digital imaging
products, sharing patent licenses on products and splitting the cost of updating Kodak
photofinishing labs with Intel equipment. The move expands an alliance begun in March 1997,
when the two companies agreed to use each other's technology in digital imaging. Kodak and
Intel plan to spend as much as $150 million over the next three years building the consumer
market for digital imaging products. (New York Times 1 May 98)

                                    DISNEY BUYS STARWAVE

Walt Disney Co., which already owns a third of Starwave Corp., is buying the remaining
two-thirds of the multimedia company and plans to incorporate it into its Buena Vista
Internet Group. Sixty-seven percent of Starwave is currently owned by Microsoft co-founder
and high-tech entrepreneur Paul Allen and Starwave employees. The two companies already
operate several joint ventures, including the and ESPN SportsZone Web sites.
Disney chairman and CEO Michael Eisner says his company plans to be an "aggressive
competitor" on the Internet. (Wall Street Journal 1 May 98)


There continues to be uncertainty about whether an entrant to our Student Essay Contest
(see below for contest details) has to be enrolled as a student on the date the contest
ends. The answer is NO. The main purpose of the eligibility requirement is simply to
indicate that the contest is NOT intended for professional writers, senior executives, etc.
Rather, the contest IS intended for people of all ages who are enrolled full-time or
part-time in a formal learning program. Thus, if we get an essay from, let's say, Mr. Bill
Gates, we will read it with interest, but we will NOT consider it eligible for the $1,000
prize -- even if his entry is articulate, well-reasoned, insightful, and compelling. (And,
for the record, we're sure it would be.)


Congress has retroactively authorized the collection of a $15 fee as part of Internet
domain name registration, money that was then deposited in the Intellectual Infrastructure
Fund. The fund, which was created in 1995 in an agreement between the National Science
Foundation and Network Solutions, is now worth about $56 million. Twenty-three million
dollars of that fund has been earmarked for Next Generation Internet projects. The money
has been tied up in a lawsuit filed by the American Internet Registrants Association, a
group of Internet service companies, which charged that the fee was actually a tax, being
illegally collected without Congressional approval. "It's nice to get that money out of
legal limbo," says Educom president Robert C. Heterick, Jr. (Chronicle of Higher Education
8 May 98)

                            FCC TO SCRUTINIZE SCHOOL WIRING FUNDS

The Federal Communications Commission, which created the U.S. Schools and Libraries Corp.
to administer the wiring of U.S. schools for Internet connections, is beefing up its
oversight of the new corporation as it begins to distribute funds to applicants. The
Schools and Libraries Corp. has asked for $2.02 billion to be paid out this year to schools
and libraries that have applied for funding. The General Accounting Office recently
criticized the FCC for over stepping its authority when it created the Schools and
Libraries Corp. and the commission is now expected to announce plans for overhauling the
corporation's administrative structure. (Wall Street Journal 4 May 98)

                                MILLER PUBLISHING GETS WIRED

Wired magazine has been sold to Miller Publishing Group LLC for a reported price of $74
million. Miller also owns the alternative music magazine, Spin. Wired previously had tried
twice to launch an initial public offering, both of which were canceled. Co-founder Louis
Rossetto resigned as CEO last July, and in September gave up the post of magazine publisher
as well. (San Jose Mercury News 4 May 98)

                               EXCITE INKS DEAL WITH NETSCAPE

Online directory service Excite will pay Netscape Communications $70 million for the
privilege of providing some of the search services that Netscape plans to make available to
users of its home page. Excite hopes to recoup the investment through advertising on the
pages it delivers to people using its search engine. Any ad revenue generated beyond the
$70 million will be shared by the two companies. The alliance between the two companies is
aimed at unseating Yahoo!, which ranks as the most popular site on the Web. At the end of
the two-year deal, Netscape and Excite could revert to full-fledged competitors, as both of
them number among the top five most heavily trafficked sites on the Web. (New York Times 5
May 98)

                                    LYCOS LINKS WITH AT&T

Search engine software maker Lycos is joining forces with AT&T WorldNet Service to provide
Web search and other services to WorldNet customers. On Thursday, Lycos agreed to pay $39.7
million for WiseWire, an Internet software company whose technology will enable Lycos to
improve its searchcapabilities. "We are continuing to... narrow the distance between us and
Yahoo! and AOL," says Lycos's CEO. Lycos currently ranks eighth in most frequently visited
Web sites, trailing fellow search engines Excite and Infoseek. (Investor's Business Daily 5
May 98)


In an op-ed piece, Edward Yardeni, chief economist and managing director of Deutsche Morgan
Grenfell says that problems arising from the Year 2000 computer glitch could cause a major
recession, as businesses fail and government agencies become incapable of delivering basic
services, including tax collection, welfare payments, national defense and air traffic
control: "The likely recession could be at least as bad as the one during 1973-74, which
was caused mostly by a disruption in the supply of oil. Information, stored and manipulated
by computers, is as vital as oil for running modern economies. If information is harder to
obtain, markets will allocate and use resources inefficiently. Market participants will be
forced to spend more time and money obtaining information that was previously available at
little or no cost... Furthermore, a 2000 recession is bound to be deflationary. The U.S.
may experience a $1 trillion drop in nominal GDP and a $1 trillion loss in stock market
capitalization." (Wall Street Journal 4 May 98)

                             @HOME TO SELL PAY-PER-PLAY CD-ROMs

The @Home Network is planning to launch an online gaming business next year, capitalizing
on its ability to deliver Internet access at higher speeds than many
telephone-line-dependent competitors. The company would store CD-ROM content on its
servers, and subscribers could access that content on a pay-per-play basis. "It's instant
access over a broadband network using a broadband pipe," says the @Home manager for media
development. A trial of the as-yet-unnamed service is planned for the San Francisco area
sometime in late August or September, with commercial launch slated for early 1999.
(Broadcasting & Cable 27 Apr 98)


Educom's Instructional Management System (IMS) project has released a set of standards
intended to assist software and publishing companies in developing electronic teaching
tools that will work together, regardless of origin. The details of the standards can be
found at . Mark Resmer, director of the IMS project and CIO at
Sonoma State University, says the standards will "foster the development of a market in
online learning." That market is estimated to reach $3.2 billion in sales of online courses
and tools by 2010. (Chronicle of Higher Education 8 May 98)


In a sudden about-face, Intuit says it will continue to produce its Quicken personal
financial software for Apple Macintosh machines. A new version will be available in 1999,
and in the meantime, Apple and Intuit will work together to promote Quicken 98, the latest
version of the software. "We're delighted to have Quicken back on the Mac, and we look
forward to working with Intuit on Quicken 98 and new products in 1999," says Apple interim
CEO Steve Jobs. (PC Week Online 6 May 98)


RealNetworks has come under fire from the British Phonographic Industry, which has issued a
warning to broadcasters that music played on the Internet using RealAudio software could be
recorded using a widely available software called Audio Rack. RealNetworks has said its
RealAudio software, which is used by 85% of Internet broadcasters, blocks users from saving
audio streams as digital files. "Because we are not downloading the whole file, the content
is not resident on the hard drive," says RealNetworks' manager of consumer products. But
BPI consultants say they "stand by their assertion that software in their possession will
record RealAudio streams, irrespective of whether the record facility is enabled."
Meanwhile, Virgin FM's webmaster says RealAudio streams could be converted into .wav files
but only at the audio quality set by the Web server. In Virgin's case, that's 28.8 Kbps --
"not the equivalent of burning a CD." (TechWeb 7 May 98)


Intel is investing $50 million over the next five years to build a research center in
Beijing that will focus on developing Internet technology for Chinese-language
applications. In addition, the company will open a $198 million flash memory chip
fabrication plant in Shanghai this week. (Investor's Business Daily 6 May 98)


Dell Computer is teaming up with Cisco Systems and U S West to develop and market PCs with
high-speed ADSL modems that run over ordinary copper telephone wires. The companies say the
package deal -- comprising a Dell Dimension XPS PC, a Cisco modem and U S West ADSL
(asymmetric digital subscriber line) Internet service -- will be available in some U S West
markets this fall. Currently, U S West's ADSL customers must buy and install their modems
at a cost of about $300. "We hear all the time from customers that it's too much work if
they have to put all the equipment together," says a U S West executive director. (Wall
Street Journal 6 May 98)

                                    COMPAQ PLANS JOB CUTS

As part of its restructuring after Compaq Computer's merger with Digital Equipment Corp. is
completed later this year, Compaq reportedly plans to cut 15,000 jobs, or 28% of Digital's
workforce. Although neither company would confirm the number, one executive, who asked to
remain anonymous, says, "It's a real solid number." Analysts speculate that the cuts will
focus on sales and services jobs, and that Compaq might shut down some of Digital's weaker
businesses, like its line of computer workstations. Many of those who lose their jobs will
be targeted for hire by Sun Microsystems, which is building a campus for 4,000 workers
outside Boston, says Massachusetts' economic development director. "Many high-tech
companies are salivating for those workers." (New York Times 7 May 98)

                                    AT&T GETS EXCITED TOO

After announcing a couple of days ago that it was forming a major partnership with Netscape
Communications, Excite Inc. says it's also planning an alliance with AT&T that will allow
the telco to market its WorldNet Internet access service to Excite's online search
directory users. Meanwhile, AT&T also just announced a similar deal with Excite rival
Lycos. The recent flurry of activity reflects the growing consensus that cross-marketing
deals between Internet service providers and so-called Internet portal sites are an
effective way for both parties to grow market share. Similar deals include Sprint Corp.'s
arrangement with Snap! and MCI's agreement with Yahoo!. (Wall Street Journal 6 May 98)

                         APPLE iMACs, NEW POWERBOOKS HIT THE MARKET

Apple Computer has unveiled its iMac desktop machine, redesigned to appeal to the consumer
market. The iMac sports a modern look, with its monitor, hard drive and stereo speakers all
in one unit. The machine, priced at $1,299, comes with a 4-gigabyte hard drive, 32
megabytes of RAM, a 15-inch monitor, 24X CD-ROM drive and 33.6-Kbps modem. Meanwhile,
Apple's G3 PowerBook has also gotten a makeover, now equipped with a 233-MHz processor,
12-inch screen, 32 MB of RAM, 2-GB hard drive, 20X CD-ROM, for $2,299. The PowerBooks are
available now, and the iMac will ship in 90 days. (Net Insider 7 May 98)

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                      RUNNING UNCHECKED and DERANGED?

    An Opinion

    Part 2

    By R.F. Mariano

    We looked at Bork and Dole (The Dork Twins) last week... If you'll
    remember, I remarked that Dole doesn't miss a chance at grabbing
    some kind of headlines.... ANY headlines. This week, he jumped up
    saying he LIKED Viagra!! I'm so happy for both him and Liz... but
    really, must he get on the "male potency" band wagon too? Atta Boy
    Bob! Way to go.... Any old port in a storm right Bob? (Yeah, you'll
    make a lot of sense someday in the future. Go home Bob, Go home.
    Give the Country a break.

    Now this week we'll take a look at the new center of controversy on
    the Hill. Its none other than Senator Orrin (The Hatchet) Hatch.
    This guy takes the cake. He made chair of the Senate's Judicial
    Committee and now he consistently tries to influence, rule and/or
    preside over Corporate America, Theological America, Philanthropic
    America and Politic America.

    Cripes!! Why doesn't The Hatchet just come right out and say it...
    "I wanna be the newest Dictator, Head Control Freak, going into the
    New Millennium!!? There, I said it for hizzoner. It presses my
    patience to the limit to see The Hatchet attack Microsoft, The
    Executive Branch, The Legislative Branch and the General Electorate
    at will and seemingly get away with it. Does this goof wield THAT
    much power?

    Here's a SENATOR whose BIAS is obviously so brazenly bold that
    people are becoming accustomed to his nonsense. Well, I'm not, nor
    should you or anybody else allow themselves to be "numbed" by his
    goofy actions. Hatch should and must be dealt with at the election
    polls. He must, along with the other control freaks, be sent a
    resoundingly loud and clear message of "Hands Off... where you know
    absolutely nothing of what you speak." Send this goof HOME where he

    Why is it he has absolutely NOTHING to say about Novell's heavy
    hand in the Networking world? Why is it he has yet to say anything
    about the manner in which Word Perfect Corp. did business in the
    computing community? Because, BOTH companies are from Utah, HIS
    HOME STATE!! That's why.

    Somewhere it was said what does all this have to do with computing?
    Well, dearies... it has a bunch to do with computing and the future
    of computing. You see, from the persecution of the President to the
    hounding of Microsoft there are so many of the same names. For
    example Hatch... Gingrich, Burton, to name a few... folks these
    birds are all militantly obvious Republicans out to sink the
    Democratic Administration any way they can. If... they succeed in
    one area, say... Clinton, then you can bet they'll get their way in
    the Microsoft matter. Think about it. Look at Janet (Waco) Reno and
    the manner in which the wonderful Attorney General has made certain
    that Starr and Klien have done the right thing. In BOTH instances
    Her silence is all but deafening.

    In the State of Florida, Attorney General Bob Butterworth is also
    contemplating "action" against Microsoft. I called and spoke to
    their media section and I must admit the gent I spoke to was up on
    his current events.  I spoke to a J. Bizzaro.   I asked pointedly
    if they had any idea of the affect both immediate and long term any
    actions to delay Win98 would have on the economy of Florida and the
    Nation?  He said they have been made very well aware of the
    possibilities.  He continually emphasized that the AG's office was
    still only contemplating action and had not done anything yet.

    Believe me folks, I made it abundantly clear that any delay of
    Win98 would adversely affect small businesses involved in both
    hardware and software sales throughout the State. Again, Mr.
    Bizzaro made it clear "nothing had been done as of yet".  I then
    offered the thought; this was an extremely un-wise move on
    Butterworth's part since it is an election year and he is seeking
    re-election. I hope Butterworth wasn't thinking that any action
    taken against Microsoft on his part would help or enhance his
    re-election chances. I added.  Additionally, I stated that any
    politician who did take part in this hounding of Microsoft would
    long be remembered if such actions were successful but ultimately,
    the economy took a beating.

    Political Suicide is exactly what I called it.

    Agree? - Disagree? Let us know drop us a line or two at

                       ANOTHER LOOK AT TODAY'S EVENTS


    Shares of Mellon BankCorp. jumped late Wednesday on speculation
    that Chase Manhattan Corp. is preparing to bid for the bank, which
    just turned down a takeover offer from Bank of New York Co. "The
    rumor is that Mellon is talking to Chase and that Chase is getting
    ready to make a bid," said James Schutz, an analyst at ABN AMRO.
    Mellon, which rejected a $24 billion merger proposal from Bank of
    New York citing different business philosophies, declined to
    comment on rumors or speculation.

                        BURTON BUSY DEFENDING TAPES

    Congressman Dan Burton said Sunday he will release full transcripts
    of 54 taped jailhouse conversations made by ex-Clinton confidant
    Webster Hubbell. Burton, chairman of the House Government Reform
    and Oversight Committee, said "tomorrow we will release the
    entirety of the 54 conversations from which we previously made
    public only extracts. I believe this will once and for all put the
    lie to any accusations of 'editing,' 'doctoring,' or 'out of
    context quotation.'" Portions of the tapes and 27 pages of
    transcripts from the 1996 conversations were released last week by
    Burton. They amounted to about one hour's worth out of the
    approximately 150 hours total on the tapes.


    Rep. Dan Burton, in hot water for calling the president a "scumbag"
    and releasing edited versions of Webster Hubbell's prison
    conversations, gave up Tuesday trying to get the committee he
    chairs to grant immunity to witnesses in a campaign fund-raising
    probe. Burton canceled a House Government Reform and Oversight
    Committee meeting scheduled for Wednesday after committee
    Democrats, who voted unanimously last week to oppose immunity for
    four potential witnesses, said they would block it again. A
    committee spokesman said the issue would be turned over to the
    House Oversight Committee, which has a two-thirds Republican
    majority, the number needed to approve witness immunity.

                         HATCH GRANDSTANDING AGAIN!

    The head of the Senate Judiciary Committee predicted Sunday another
    independent counsel will soon be named to investigate President
    Clinton, this time over alleged campaign finance abuses. Panel
    chairman Orrin Hatch said on Fox News Sunday Attorney General Janet
    Reno may soon have no choice but to seek a new special prosecutor
    because of what he implied may be new evidence of wrongdoing.
    Clinton allies meanwhile urged Reno to consider firing Independent
    Counsel Kenneth Starr on grounds his investigation of the Clintons'
    Whitewater real estate tangle and related matters was out of

                     THE POT CALLING THE KETTLE NAMES!

    More than a dozen Democrats walked out on House Speaker Newt
    Gingrich Thursday when he said President Clinton was not above the
    law during a speech before the New Hampshire legislature. Gingrich
    accused the president's longtime friend Webster Hubbell, indicted
    last week on tax evasion charges, of criminal acts when a handful
    of the 424 legislators stood up and left. "People can walk out, but
    what I'm saying is a fact about a crime," Gingrich said as the
    heavily Republican House and Senate membership erupted in applause.
    Gingrich defended his speech, saying voters deserve the know the
    facts of the case.

                     BOB DOLE CALLS VIAGRA 'GREAT DRUG'

    Former presidential candidate Bob Dole said Thursday he
    participated in tests of the new wonder drug for impotence, Viagra,
    after winning his battle against prostate cancer. "It's a great
    drug. I wish I'd ... bought stock earlier," Dole said on CNN's
    "Larry King Live," referring to sharp gains in the stock price of
    the drug's manufacturer, Pfizer Pharmaceuticals after the FDA
    approval. The Food and Drug Administration approved Viagra in March
    after tests on more than 3,000 men showed the drug could help
    impotence associated with diabetes, spinal cord injuries and
    prostate surgery. Dole told CNN he was in the drugmakers'
    "protocol" to test Viagra. "I think it's an effective drug," the
    former Senate majority leader said.


    The Senate approved legislation Friday to create a presidential
    advisory commission to look into whether any Holocaust-era assets
    were located in the U.S. The commission will research the
    collection and disposition of Holocaust-era assets in the U.S. from
    1933 to 1945. "We need to know what art, gold, jewelry, bank
    accounts and other valuables were taken from Holocaust victims and
    ended up in the U.S.," said Senate Banking Committee Chairman
    Alfonse D'Amato. The legislation requires the commission to issue
    its final report by Dec. 31, 1999. D'Amato has led a campaign to
    press Swiss banks to search records for Holocaust assets.


    Frontier Corp. planned to unveil Tuesday at a cable industry trade
    show a system that allows cable TV companies to deliver high-speed
    Internet access without making costly upgrades to their cable
    networks. In an ironic twist, the system is using existing standard
    phone lines to provide a crucial link that has previously prevented
    many cable operators from offering Internet access. The system
    allows cable TV companies to deliver Internet access via existing
    one-way cable networks into customer homes while relying on
    standard phone lines to transmit data from customer homes to the
    outside world.


    The Dutch government is seeking international tax agreements to
    regulate trading through electronic media such as the internet,
    Junior Finance Minister Willem Vermeend said in a letter to
    Parliament on Tuesday. "The emerging 'internet economy' will have
    an indisputable effect on the (Dutch) tax system and on levying
    taxes," Vermeend said, adding that this could have budgetary
    consequences for the Netherlands in the longer term. The Dutch tax
    system should be adjusted to react on new developments in
    information and communication technology (ICT) but the Dutch should
    also look abroad. "International agreements are necessary regarding
    levying taxes on turnover and profits made through electronic
    commerce," Vermeend said.


    Digital Equipment Corp. said it has introduced an internet search
    engine which supports one-step searching across the entire Web in a
    variety of languages, among them Chinese, Japanese and Korean.
    Digital said in a statement that its AltaVista World Index was
    unlike other search engines because it was not limited to those
    that use a standard Western encoding known as ISO-Latin-1. The
    company said about 30% of the Web was written in languages other
    than English, and much of that 30% was in Chinese, Japanese or
    Korean. The system also allows users to search for Central
    European, Cyrillic, Greek, Hebrew, Arabic, Turkish and other
    languages from one location, Digital said.


    Many countries appear ill prepared for the disruption to basic
    services that the Year 2000 computer glitch may cause, the head of
    the CIA office studying the issue said Tuesday. "We're concerned
    about the potential disruption of power grids, telecommunications
    and banking services" among other possible fallout, especially in
    countries already torn by political tensions, Sherry Burns said.
    She said CIA systems engineers and intelligence analysts were
    focusing beyond the technical problem of reprogramming computers to
    recognize dates when the Millennium dawns on Jan. 1, 2000.


    The banned or censored words of five dissidents from China, Kenya,
    Algeria, Cuba and Cameroon were the first to be posted Tuesday on a
    new web site displaying the works of political activists. The web
    site is published by the Digital Freedom Network, an
    international partnership founded in the New York area to fight
    censorship and protect human rights. "By putting banned or
    restricted material on our site we give dissidents a powerful,
    effective way to communicate with people around the world," the
    group's executive director Bobson Wong said. He said the collection
    of speeches, newspaper articles, essays, poetry and letters written
    from prison would include material from 17 countries.


    Compaq Computer Corp. will lay off about 15,000 Digital Equipment
    Corp. employees and take a charge of up to $2 billion as a result
    of its $9.6 billion takeover of the computer hardware company, a
    source said. The cuts represent about 27% of the 54,000 employees
    at Digital, which has reduced its staff from a high of 127,000 in
    the late 1980s as it struggled for profit. Digital employees have
    anticipated the cuts for months and resumes have been flooding
    Boston-area computer companies, analysts said. Many Digital
    employees do not want to make the move to Houston, home of Compaq.
    The combined company will create a high-tech superpower with sales
    of nearly $38 billion. That rivals Hewlett-Packard Co's No. 2
    ranking in the industry behind IBM Corp.

                APPLE UNVEILS "JETSONS"-LIKE MAC FOR $1,299

    Apple Computer Inc. unveiled a $1,299 "Jetsons"-like computer aimed
    at consumers called the iMac, in a bid to regain its lost position
    in the consumer market. Apple also introduced a new line of sleek,
    black PowerBook notebook computers designed around its powerful G3
    microprocessor, starting at $2,299 and available now. The iMac - in
    a dual-toned aqua and clear plastic enclosure, with a carrying
    handle at the top - is an all-in-one system, with only an external
    keyboard, and a built-in 15-inch monitor. The computer, which will
    be available in 90 days, has a 233 megahertz PowerPC chip and comes
    with 32 megabytes of memory, a 4-gigabyte hard drive, a built-in
    CD-ROM drive and built-in speakers. It does not have a floppy

                        IBM TO LAUNCH NEW MAINFRAME

    IBM Corp. will announce later Thursday the fifth generation in its
    microprocessor-based mainframe family, delivering ahead of schedule
    a system more powerful than the company had promised. The new
    mainframe family, called the S/390 G5 - the G5 stands for fifth
    generation - doubles the performance of IBM's previous G4 models
    launched last June, achieving performance of up to 900 million
    instructions per second (MIPS) when configured with 10
    microprocessors. Analysts said the new systems represent a
    significant boost for IBM's competitive position against its two
    main competitors in the mainframe business, Hitachi Ltd. and
    Fujitsu Ltd. unit Amdahl Corp.


    California Gov. Pete Wilson used a mouse Thursday to buy a Mickey
    Mouse toy over the Internet in a show of support for the state's
    flourishing electronic commerce industry. Wilson, who bought the
    crawling "Baby Mickey" from the Internet toy store eToys, told a
    group of Silicon Valley executives he was committed to policies
    that would "encourage rather than inhibit electronic commerce,"
    even if it meant lost tax revenues in the short term. "We don't
    want to have any practices in which the government inhibits what we
    think has enormous potential. I think it is important that the
    government be an ally," he told the Electronic Commerce Advisory

                        N.C. POLITICIAN SPAMS VOTERS

    Why stump when you can spam? A North Carolina judge, seeking the
    Democratic nomination for the state Supreme Court, indiscriminately
    sent an e-mail message to every Internet address his campaign could
    get its hands on this week, an online practice known as spamming.
    The political spam was spread from Internet address that was set up not to take return mail - a
    staple of spamming. It landed at e-mail addresses as North Carolina
    voters prepared to go to the polls for party primaries Tuesday.
    Martin won't say who sent the e-mail or what computer it was sent
    from, but state elections officials fielded complaints from voters
    across the state and across the country.

    Rumor Monger Drudge at IT Again!


    BUSINESS WEEK is set to report that the Justice Department is
    planning to launch an expansive antitrust action against MSFT --
    within days, the DRUDGE REPORT has learned. The report will be
    published in Friday's BW and posted on the magazine's web and AOL
    sites. The magazine reveals that the agency wants to pounce by May
    15, the date on which the software giant is scheduled to start
    shipping the Windows 98 operating system to PC makers! Sources
    familiar with the Justice Department case have laid out a detailed
    plan of attack against the software giant for BUSINESS WEEK.
    Barring a last minute settlement -- Gates, Justice Department
    antitrust chief Klein and top members of their legal did meet
    Tuesday night at an undisclosed location in Washington -- Justice
    will charge MSFT with using illegal means to protect its monopoly
    in PC operating systems and extend its monopoly power into other
    markets. The Feds are prepared to launch a quick court action to
    force MSFT to alter Windows 98, which includes a version of the
    company's Internet browser, BW reports. They want to force MSFT to
    offer a browser-less version of Windows 98 that would be sold at "a
    commercially reasonable price" -- meaning less than the version
    with the browser. Justice is also toying with several possible ways
    to remove the browser. Up until now, BW reports, Justice Department
    officials predicted they would not seek a breakup of MSFT. But they
    now concede that could be the end result if the court concludes
    splitting up the company is the best solution.

                                INTEL TOO!

    In a *separate* story, red-hot BUSINESS WEEK will also reveal that
    the Federal Trade Commission is prepared to take on the other half
    of the Information Age duopoly -- INTEL! The magazine will report
    that by the end of June, the FTC staff plans to file a suit against
    INTEL to weaken what it believes is a monopoly hold, similar to
    MSFT's, over a crucial segment of the Nation's high-tech industry.
    BW says the FTC plans to focus on several of INTEL's business
    practices, including forcing customer loyalty by withholding chip
    supply or information on future products from companies that don't
    use INTEL chips exclusively...


        LAS VEGAS -- Despite threats from some state attorneys
        general to stop the shipment of Windows 98, Microsoft senior
        vice president Jim Allchin said the company is poised to put
        the product into manufacturing in only nine days. At a
        keynote address here in Las Vegas at NetWorld+Interop,
        Allchin said Win 98 will be going to manufacturing May 15
        and will hit stores June 25.

        Allchin's comments came after U.S. Department of Justice
        officials confirmed Wednesday morning the agency's top
        antitrust attorney, Joel Klein, met with Microsoft (company
        profile) chairman Bill Gates for more than two hours Tuesday
        night. A spokesperson for the Justice Department said Gates
        requested the meeting. Sources said Gates said Microsoft is
        not a monopoly, and any attempt to prevent or delay the
        shipment of Win 98 would be harmful both to the computer and
        software industries as well as to the overall economy.

        Demonstrated was Chrome, Microsoft's high-end 3-D rendering
        technology that will be included in both Win 98 and Win NT
        5.0. Chrome is able to do 3-D rendering of websites on a PC.
        While no definitive time frame for a Win NT 5.0 release was
        given, he said Microsoft is "working hard" to deliver beta 2
        of NT 5.0 to the market by early summer.

        He also said the Redmond, WA-based Microsoft was working on
        an embedded version of Win NT and that Microsoft's
        BackOffice suite will be revved up to take advantage of NT
        5.0 and released shortly after NT 5.0. Microsoft said it
        hopes to ship NT 5.0 this year. However, a number of
        industry executives have speculated that the operating
        system will not ship until the first quarter next year. On
        the 64-bit Win NT front,  he also stated Microsoft has
        successfully booted 64-bit NT on Alpha and on a Merced
        simulator and "was making good progress."

        SQL Server 7.0 and System Management Server will be
        available later this year. Microsoft announced here at N+I
        that MCIS 2.0 was in beta and that Win NT Services will be
        in beta this summer. Addressing Wednesday's business
        climate, Allchin said value-added resellers and IT managers
        are grappling with budget pressures and the incredible
        growth of connected Internet nodes. Allchin also previewed
        some of the storage hierarchical management capabilities in
        Win NT 5.0. Furthermore, he demonstrated NetShow and the
        ability to synchronize audio and video. Allchin also
        demonstrated the capabilities of Win NT 5.0's Active
        Directory Manager as a means to lower the total cost of PC

        [adobetop.gif (3819 bytes)]

                         The World's Best-Selling...
                     Professional Image-Editing Software
                              Just Got Better!

        San Jose, Calif. (April 26, 1998) (Nasdaq:ADBE) - The
        world's best-selling professional image-editing software
        will be available next month in its most powerful version
        ever with new tools to unleash the talents of inventive and
        creative users of Adobe Photoshop software.

        Key new features in Photoshop 5.0 such as the;

           * History Palette
           * Editable Text Layers
           * Spot-Color Channels
           * Color Management support make it easier for users to
             focus their creativity on their designs.

        "Customer input has played a major role in shaping the
        Photoshop 5.0 release," said John Leddy, Photoshop group
        product manager. "In addition to answering our customers'
        top requests, we've added a wealth of powerful features that
        address the full range of Photoshop uses-from color
        correction to photo-composition and from print production to
        Web design. Users will gain more freedom to experiment, more
        predictable results, and more saved time."

        Freedom to Experiment
        The addition of the History Palette satisfies one of users'
        top requests, the ability to undo multiple steps with a
        single click. Katrin Eismann, a photographer and author in
        Los Angeles, thinks the History Palette is "brilliant."
        "It's as if someone is taking notes of my work in progress,"
        says Eismann. "Since the History Palette tracks every step
        of my work, I feel more relaxed and try out more new ideas.
        If I decide I like what I did 10 minutes ago better, I click
        on that step and I'm back there."

        Photoshop 5.0 software also offers an innovative History
        Brush that allows users to seamlessly combine different
        versions of the same image. The History Brush enables
        customers to create unique designs that incorporate the best
        elements from both images.

        Saves Time
        Other practical new features of Photoshop 5.0 include
        timesaving Magnetic Selection Tools. The Magnetic Lasso
        makes it a breeze to trace the outline of even the most
        intricate objects. "Today, for example, I'm leaving on a
        shoot for an Italian fashion magazine," says Douglas
        Kirkland, a fashion and celebrity photographer whose work
        includes photographs of celebrities from Marilyn Monroe to
        Leonardo DiCaprio. "With the magnetic lasso I know I can
        finish this project in three days instead of four. It is an
        amazing tool and it saves a phenomenal amount of time."

        Web and print designers will appreciate the new Layer
        Effects feature in Photoshop 5.0 which automates the
        creation of formerly time-consuming effects such as shadows,
        glows, and bevels. Now, these effects can be attached to any
        layer with a few mouse clicks, after which they remain
        "live." The effects regenerate themselves automatically any
        time the layer is edited.

        Predictable, Professional Results
        Color management has challenged many creative professionals
        who require color consistency across hardware and for output
        of their designs. Phototoshop 5.0 software helps resolve
        this issue by complementing its existing color management
        engine with full support for industry-standard ICC profiles.
        Users can now choose the color management workflow they
        prefer, or they can even integrate different approaches. The
        result is more consistent color from input through output.

        Precision and Control
        Editable Type with Character Level Formatting is one of many
        new features that give Adobe users even greater precision
        and control during the editing process. Users have complete
        control to flow text horizontally or vertically, to mix
        multiple typefaces, and to adjust size, kerning, baseline,
        and tracking. Best of all, the new Type Tools create special
        type layers that retain their formatting characteristics and
        can be edited at any time.

        This newest release reinforces Photoshop as an indispensable
        tool for a broad range of users. Ben Willmore, CEO of
        Digital Mastery in Boulder, Colorado, has taught everyone
        from corporations to government agencies to Hollywood film
        studios how Adobe software can help their bottom line. "I
        tell companies, if you're not using Photoshop to create your
        documents you're wasting time and money," says Willmore. Too
        many firms, he says, pay high fees for others to do their
        scans, color corrections, retouching and image compositing.
        Says Willmore: "Photoshop 5.0 has become so refined and has
        so many time-saving features that tasks that once required
        five production people can now be done by one person."

        Adobe Photoshop 5.0 for Windows also includes the
        FotoExplorer_ software from FotoNation Inc. which makes
        bringing images into Adobe Photoshop from some popular
        digital cameras as easy as accessing files from a desktop

        Since Adobe introduced Photoshop software in 1989, growth in
        digital imaging has exploded. Sales of digital cameras are
        expected to increase six-fold within two years, and Eastman
        Kodak Co. estimates that of the 72 billion photographs taken
        each year worldwide, between 20 to 40 percent will be
        processed digitally by the year 2000, driving even greater
        demand for image editing tools.

        In addition to millions of new users, the range of people
        and purposes for which they use Photoshop is now more varied
        than ever. Photoshop 5.0 strengthens Adobe's extensive
        portfolio of digital imaging products for creative
        professionals, business customers, and home users. Whether
        for work with images on the Web, in print, in video, at
        home, or in the office, Adobe has the solution.

        Pricing and Availability
        Photoshop 5.0, priced at $995, is expected to ship in May.
        Photoshop users will be able to upgrade for an introductory
        price of $199.

        About Adobe Systems Incorporated
        Based in San Jose, Calif., Adobe Systems Incorporated
        develops and supports products to help people express and
        use information in more imaginative and meaningful ways,
        across all print and electronic media. Founded in 1982,
        Adobe helped launch the desktop publishing revolution.
        Today, the company offers a market-leading line of
        application software and type products for creating and
        distributing visually rich communication materials; licenses
        its industry-standard technologies to major hardware
        manufacturers, software developers, and service providers;
        and offers integrated software solutions to businesses of
        all sizes. For more information, see Adobe's home page at on the World Wide Web.


        Special Notice!! STR Infofile File format for Articles

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           * No Indenting on any paragraphs!!
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           * Most of all.... PLEASE! No ASCII "ART"!!
           * There is no limits as to size, articles may be split
             into two if lengthy
           * Actual Artwork should be in GIF, PCX, JPG, TIF, BMP,
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           * Artwork (pictures, graphs, charts, etc.)should be sent
             along with the article separately
           * Please use a single font in an article. TTF Times New
             Roman 12pt. is preferred. (VERY Strong Hint)

        If there are any questions please use either E-Mail or call.
        On another note... the ASCII version of STReport has reached
        the "end of the line" As the major Online Services moved
        away from ASCII.... So has STReport. All in the name of
        progress and improved readability. The amount of reader mail
        expressing a preference for HTML as opposed to our Adobe PDF
        enhanced issue is running approximately 11 to 1 over the PDF
        edition.  Cited are size, graphic quality and speed of
        download.   I'm elated that requests for our issues in HTML
        far outnumber PDF. So PDF too, like ascii, is gone. HTML is
        now a reality.  On our web download page is a selection for
        HTML (Read or Download). As you can see, STReport will not
        be caught in the old, worn out "downward compatibility
        dodge" we must move forward.

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

        Ralph F. Mariano, Editor
        STReport International Online Magazine


        Classics & Gaming Section
        Editor Dana P. Jacobson

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

        Another week blows by.... What a terrible week,
        weather-wise. Rainy, dark and gloomy. What happened to

        I know that I've been saying that I've needed more time to
        do other things in my life - 'tis true. One of the things
        I've been spending a lot of time doing is working in the
        yard. It's finally "clean". I must have put out in excess of
        a hundred bags of lawn refuse (leaves, pine needles, acorns,
        dead grass, tree branches, etc.) in the last month or so.
        This yard was a disaster, left over from the previous owner.
        I did some re-seeding in the front lawn (grass is actually
        starting to grow!) and put in some flowers (and most are
        still alive!). It's been fun. A little more gardening in the
        front and then I have to tackle the sides and back. Both
        really need some serious work, but I'm looking forward to
        it. And then I have to clean out the swimming pool.
        Hopefully I'll get back to inside the house and finish up
        some much-needed work in various areas.

        Friends weren't kidding when they told us that owning a
        house means there will always be work to be done! But it is
        rewarding to see the results of your labor. I'm sure that
        many of you can relate. Then again, there are probably also
        many of you who feel that I'm full of what helped my new
        grass grow! <grin>

        But back to STReport... I've been on the staff for almost
        ten years now. I started sometime before the WAACE show of
        1989. It seems like an eternity, but I can also remember
        that show - my first _ever_ Atari show. What an experience
        that was, as well as future shows. WAACE was really the
        turning point for me and my appreciation for Atari users.
        The camaraderie and fun times made it all worthwhile - I
        really miss those times. It's also a reason why it's so
        difficult to even consider limiting or ending my stint with
        STReport. We'll have to take it one day at a time and see
        how it all plays out. In the meantime, let's hear from
        another voice from Atari's past.

        Until next time...

                  Gribnif Software's 10th Anniversary Sale

        From: Dan Wilga

        Gribnif Software's 10th Anniversary Sale

        It all started ten years ago with the release of NeoDesk
        1.0, a program few even thought could be written. Since
        then, companies have come and gone, but we're still here
        providing software for Atari computers. As a way of saying
        "Thank You" for ten wonderful years, we're offering special
        discounts of up to 50% on nearly all our major products, now
        through May 31! If you've put off buying Geneva or NeoDesk
        all these years, now is definitely the time to get it!

        Here are just some of the special prices available:

        NeoDesk 4: The latest version of the original desktop
        replacement for Atari computers is  now just $35!

           * Geneva: The multitasking application environment is now
             just $35, as well
           * XBoot III, the premier boot manager, is now $30
           * CardFile 4, the personal information manager, is $20
           * ...and we even have a few copies left of NeoDesk 3, for
             just $10 each!

        Prices listed do not include shipping. See for more products and info.

        Dan Wilga
        Tel/Fax: 413-532-2434

        Gribnif Software
        PO Box 779
        Northampton, MA 01061-0779

                               Gaming Section

        "4x4 Mud Monsters"!
        MultiGen Support!
        Activision and N64?

        Industry News STR Game Console NewsFile - The Latest Gaming

               MultiGen Puts Game Authoring Pedal to the Metal

        Enhanced Support for Nintendo N64, Sony PlayStation, VM
        Labs' Project X Announced with Debut of Innovative Prototype

        LONG BEACH, Calif., May 5 /PRNewswire/ -- To open the 1998
        Computer Game Developers Conference today, MultiGen, Inc.,
        the leader in realtime 3D software, announced several
        strategic technology relationships with makers of the
        world's most popular video game platforms, including
        Nintendo(R) N64(R) and Sony PlayStation. MultiGen also
        unveiled an innovative new Game Developer Prototype Program,
        enabling start-up game developers to create a new generation
        of 3D hit titles with little or no overhead costs.

        "MultiGen is committed to delivering the world's best
        realtime 3D game authoring solutions for developers
        targeting every major game system," said Dave Rolston,
        president and CEO of MultiGen, Inc. "Today's announcements
        with Nintendo, Sony and VM Labs - as well as the debut of
        our Game Developer Prototype Program - underscore our desire
        to give developers the tools to breathe life into
        unforgettable new game experiences."

        Already a favorite among next-generation game developers,
        MultiGen software has been used to develop some of the
        world's best-selling game titles, including "Mario Kart,"
        "Super Mario" "Wave Race," "GoldenEye 007," "San Francisco
        RUSH," "Jet Moto I and II" and "Twisted Metal I and II."
        MultiGen Creator(TM) gives artists and modelers all the
        right tools to efficiently and easily design, edit and
        prototype innovative 3D games with realtime playback

        "Time is precious in game development," said Joan Wood,
        president of Mango Grits, developers of the interactive 3D
        flying action title, "Barrage." "MultiGen saves us time by
        enabling us to modify the artwork in its publishable state
        instead of going back to the original design software. Even
        prototype content can easily be used in the final title. As
        a result, we can focus our efforts on creating content."

        MultiGen announced that its game authoring solutions will
        support Nintendo Systems, Inc.'s NIFF 2.0 (Nintendo
        Intermediary File Format), enabling Nintendo N64 game
        developers to quickly and easily enhance and customize 3D
        content with realtime capabilities. NIFF 2.0 allows N64 game
        developers to optimize content created with MultiGen's
        popular Creator game authoring solution for deployment
        within new Nintendo N64 titles.

        NIFF 2.0 allows game developers to expand and build on the
        capabilities provided in the Nintendo development kit, by
        offering easier access to data elements such as animation,
        lighting and special effects. Developers can then extend or
        customize their games on an open platform by adding
        attributes and functionality offered by 3D authoring
        systems. With NIFF 2.0, N64 game developers will be able to
        take full advantage of the rich set of animation and
        graphical features found in Creator, MultiGen's realtime 3D
        authoring system and the first hierarchical realtime 3D
        modeler for Windows NT and Silicon Graphics workstations. As
        a result, Nintendo N64 game players benefit from spectacular
        3D graphics that run faster and more efficiently.

        MultiGen also announced that Creator will support Sony
        Computer Entertainment America, Inc.'s Hierarchical Modeling
        Data (HMD), a high-level graphics processing framework
        available under the PlayStation development environment.
        Sony's HMD gives PlayStation game developers more
        flexibility to create and prototype games, thereby speeding
        the development process and enabling the creation of a new
        generation of realtime 3D titles.

        By supporting HMD, Creator accelerates the game authoring
        process so that designers and artists can effectively
        communicate their ideas. As a common language, HMD is fully
        convertible with plain text format and provides a smooth
        transition from formal file formats. The implementation of
        HMD is coupled tightly with the PlayStation hardware to
        provide a solid foundation to optimize performance related
        algorithms used in titles.

        Also today, MultiGen announced that its popular game
        authoring tools and industry-standard OpenFlight visual
        database format will drive the development of revolutionary
        new video games for Project X, the next-generation video
        game platform developed by VM Labs. Already popular for
        creating 3D titles with immersive, realistic game
        environments, MultiGen's authoring tools will create game
        content compliant with the Project X platform, which is
        expected to be optimized for realtime 3D graphics.

        The announcement extends MultiGen's expertise in realtime 3D
        authoring to Project X software developers by providing them
        with all the tools and resources necessary for optimizing a
        model or world for playback in realtime. The Project X video
        game console is scheduled for release Christmas 1998 from VM
        Labs. The Los Altos, Calif.-based game console company is
        currently developing the Project X kit, which comes Ethernet
        ready and equipped with a modem to allow Internet access,
        along with several other entertainment features.

        MultiGen also unveiled its Game Developer Prototype Program,
        enabling start-up game developers to create a new generation
        of 3D hit titles with little or no overhead costs. The
        revolutionary program loans thousands of dollars in game
        authoring software at no cost to fledgling developers
        working on new titles.

        MultiGen's Game Developer Prototype Program loans a limited
        number of developers free software and technical support,
        enabling them to quickly design and prototype new titles and
        more rapidly solicit funding from game publishers.
        Participants are under no obligation to purchase MultiGen
        software. Developers can apply for participation in
        MultiGen's Game Developer Prototype Program at by sending
        email to, or by phoning 408-261-4100.

                     Activision Sheds Light on N64 Plans

        May 4, 1998 (MULTIMEDIA WIRE, Vol. 5, No. 85) --
        Activision's decision to make public its plans for N64
        before E3 was to intended keep retailers from being
        surprised at the show, Activision Senior VP of Marketing
        Eric Johnson tells MMWire. Activision Friday said it will
        produce Quake II and Nightmare Creatures for N64, leaving GT
        Interactive as the only major console publisher holding out
        on developing for the platform -- Sony and Sega aside. GT
        plans to release seven PlayStation titles, but only one N64
        title, Mike Piazza's Strikezone, in North America this year,
        an official says. Activision's choice of proven titles is
        consistent with its conservatively late entrance onto N64.

        "We wanted to put our best foot forward on the platform,
        [and Activision] expects to see success," Johnson says. To
        be a player this late in the hardware cycle, a publisher
        needs a high-quality game, a good brand and has to be
        willing to advertise on TV, he adds. "Large publishers can't
        afford to ignore [N64]," Ian Berman of Frost & Berman says.
        For Christmas 1998, publishers can succeed on N64 with
        mediocre titles, so it "makes absolute sense" for Activision
        to bring Quake II and Nightmare Creatures out before
        Christmas, he says. For Christmas 1999, it is hard to tell,
        he adds. Among other leading publishers, Eidos is understood
        to be at work on N64 titles. MMWire expects the company to
        bring Tomb Raider to the platform by Christmas. Even the
        notoriously conservative THQ is preparing for its
        second-generation N64 game this year.

           Take-Two Interactive Software, Inc. Announces '4X4 Mud

        NEW YORK (May 5) BUSINESS WIRE - May 5, 1998 - Take-Two
        Interactive Software, Inc. announced today that it has
        signed an agreement with Gathering of Developers, Ltd. to
        co-publish and distribute 4X4 Mud Monsters. 4X4 Mud Monsters
        is being developed by Gathering of Developers partners Edge
        of Reality, Inc. and Terminal Reality Inc., exclusively for
        the Nintendo 64. Currently, 4X4 Mud Monsters is scheduled
        for release in the first quarter of 1999. 4X4 Mud Monsters
        is the first product to be developed and marketed by The
        Gathering exclusively for a console system. Additionally,
        Take-Two is the first corporate co-publishing and
        distribution partner The Gathering has chosen to work with.

        4X4 Mud Monsters is a hard driving off-road truck
        simulation, which goes beyond real world practicalities. The
        product will take full advantage of the Nintendo 64's 3D
        graphics power and utilize a powerful new proprietary N64
        engine developed by Edge of Reality's founder Rob Cohen, and
        based on Terminal Reality Inc.'s Photex 2 Engine for the PC.
        Terminal Reality is working closely with Edge of Reality to
        share their proprietary engine technology, most recently
        featured in Microsoft, Inc.'s Monster Truck Madness 2 for
        the PC.

        Mike Wilson, CEO of The Gathering, said, "Gathering of
        Developers, Terminal Reality and Edge of Reality are pleased
        to be working with Take-Two in the United States and Europe.
        They have embraced our business philosophy fully, and we are
        excited by their recent growth in the entertainment software
        publishing industry on both sides of the Atlantic. Rob
        Cohen, President of Edge of Reality, Inc., said, "I have
        enjoyed working exclusively on the Nintendo 64 console over
        the past several years, and am thrilled to be able to apply
        my expertise on the system to a project as exciting as 4X4
        Mud Monsters."

        Russ Howard, Vice-President of Business Development, said,
        "Take-Two is pleased to be partnered with The Gathering,
        Edge of Reality, and Terminal Reality to bring 4X4 Mud
        Monsters to market exclusively for the Nintendo 64.
        Gathering of Developers has assembled a fantastic group of
        proven entertainment software industry talent, and Take-Two
        is excited to be their first corporate partner within the
        video game industry."

          Tee Off with Hot Shots Golf -- the Arcade-Style Golf Game

        FOSTER CITY, CALIF. (May 5) BUSINESS WIRE - May 5, 1998 -
        Sony Computer Entertainment America Inc. announced today
        that Japan's best selling arcade-style PlayStation golf
        videogame, Hot Shots Golf, will be available this May
        exclusively for the PlayStation game console. Hot Shots Golf
        was created to be a fun playing videogame for all ages and
        skill levels, with an arcade-style presentation that
        captures the spirit and realism of golf.

        "The beauty of Hot Shots Golf is that it's a fun game for
        anyone to pick up and play but more importantly, it's the
        most advanced golf engine ever developed," said Peter Dille,
        senior director, product marketing, Sony Computer
        Entertainment America. "That means the gameplay is flawless.
        We're getting more superlatives on Hot Shots Golf every day,
        from both the gaming press as well as the golfing
        community." In fact, consider the following accolades:

        "Hot Shots Golf is the best looking and most fun-playing
        golf game of all time." - Paul Johnson, Sport Magazine

        "Playing Hot Shots Golf is like being on the golf course,
        with its great golf engine. This game is so much fun to
        play." - Mike Stinton, The Golf Channel

        "The graphics are so vivid it's like watching live golf on
        TV." - Dave Stevens, ESPN

        One of the gameplay features that makes Hot Shot Golf a
        "stand out" in the golf category is the quick set-ups in
        between shots (no long load times) and fast responses to
        gameplay commands.

        Hot Shots Golf provides gamers with six different play modes
        that include Match Play, Stroke Play (where players can
        "bet" against their buddies), Tournament Mode, Training
        Mode, VS. Mode and a Hidden Bonus Mode. VS. Mode gives
        gamers the ability to play with new characters as they win
        more progressively-challenging matches, and gain experience

        Another key feature in Hot Shots Golf is the Experience
        Level System, which rewards players with experience points
        for playing well. Earning experience points means players
        earn the right to play on other courses. Hot Shots Golf Key

           * Gameplay designed to appeal to all ages and skill
             levels (not just hard-core gamers).
           * Amazing colorful 3D graphics.
           * Real physics: a realistic feel to the swing, the ball's
             flight trajectory, how the ball lands, weather
             conditions and sound effects. Seamless load time: quick
             set-ups in between shots and quick responses to swing
           * Six challenging and fun-to-play game modes: Match Play,
             Stroke Play (with a Bet Mode), Tournament Mode,
             Training Mode, VS Mode and a hidden Bonus Mode.
           * Six golf courses
           * Other features include: miniature golf course,
             computer-controlled caddie, ability to call your own
             shots by selecting your club, gauging your distance and
             picking your direction.
           * Replay feature allows players to check out awesome
             shots and embarrassing blunders.
           * Zooming camera to hone in on the hole.
           * Up to 4 players.
           * Multi tap compatible.

        ONLINE WEEKLY STReport OnLine The wires are a hummin'!

                            PEOPLE... ARE TALKING

        Compiled by Joe Mirando

        Hidi ho friends and neighbors. I'll tell you right from the
        start that this week's column is going to be on the short
        side. I somehow managed to pinch a nerve in my neck and it's
        kind of difficult to sit at the computer... even if it IS an
        Atari. <grin>

        Before we get to the actual "meat" of the column, I'd like
        to tell you about something that happened to me the other
        day. I'm betting you'll think it's as cute as I did. My
        sister had come over to pick up some information that I'd
        downloaded from the internet for her for a college class
        project. While she was here, she mentioned that she and her
        husband were going to buy a computer soon but had no idea of
        what to look for or look out for, and what a fair price
        would be.

        I excused myself for a few moments, fired up my trusty
        Atari, connected up to the internet, and accessed the
        website of one of the few PC manufactures I actually trust
        (Micron). Within five minutes I had a printed page listing
        all of the things that I thought they'd need in a computer,
        all the information they'd need to order, and all the
        technical jargon that wouldn't mean a thing to them anyway.

        My sister looked at the page (price first, of course) and
        asked if this was the kind of computer that I had. Without
        explaining too much, I told her that it wasn't. She became
        somewhat suspicious and asked why I didn't recommend
        whatever it was that I was using for her and her husband. I
        told her that the computer that I used was no longer being
        manufactured and that the company itself had been run into
        the ground and sold off to someone who had no idea of what
        to do with it, who had recently sold it to Hasbro.

        Now she was really suspicious. To her way of thinking,
        computer companies couldn't go out of business. The computer
        market is so robust right now that anyone making a computer
        simply HAD to be doing okay. Anything else would be...
        wrong. (Okay, okay, so my sister isn't the sharpest pencil
        in the box. That's neither here nor there <grin>)

        Now marks the time I've started calling "The Computer Novice
        Renaissance". It used to be that people thought that you had
        to have a Ph.D. in computer science to operate a computer.
        Now non-users and novices think that ALL computers simply
        'find a way' to do whatever it is that you want them to do.
        True, people who are more familiar with computers know
        better, but the novices still outnumber computer-literate

        At any rate, I explained that my trusty TT required that I
        actually work to get something done. I couldn't simply click
        on the install button and run the same type of cutting-edge
        application that users of newer machines enjoy.

        She thought for a moment and then said that I probably
        wouldn't 'enjoy' doing that anyway... but SHE would. I
        agreed. As I've said before, that's not necessarily a bad
        thing, but it does make a computer a tool and not a hobby. I
        don't know what I'd do if I had a computer that didn't
        require me to 'mess with it'. I'd probably either join the
        U.S. Postal Service or become a special prosecutor
        investigating the President...

        "Hmmm... let's see. No clear evidence of wrong-doing while
        he was Governor. No clear evidence of his wife doing
        anything wrong... oh, except for this tape that I'm not
        supposed to have anyway. Oops, that's right, it was edited
        to cut out parts that said that she was on the
        straight-and-narrow. They'll find out about that eventually.
        I better not press that. Hey, there's that land deal that
        went bad. Aaahh, he was just an investor. He had nothing to
        do with the mechanics of it. Oh, there's that sex thing with
        the brunette from his home state. Nope. Her lawyers don't
        want to split the fees. What about that white house intern?
        Another tape? Darn. It's second-person hear-say, and not
        even about anything illegal. Well, I'll just have to milk
        this investigation for all I can. Meanwhile, I can keep
        taking big bucks through my law firm from some of the very
        tobacco companies that the president is trying to make
        things hard for..."

        Hmmm... not even a mention of a computer in any of that.
        Guess I better bone up for the civil service exam. <grin>

        Well, now that I've vented, let's take a look at what's
        happening on the Use Net.

        From the NewsGroup

        Steve Stupple asks:

        "Is it possible to have two DMA-SCSI adaptors running in
        parallel? e.g. one running my hard drive and another taking
        care of my CD-ROM drive?"

        Nicholas Bales tells Steve:

        "You shouldn't need that, since the SCSI architecture is a
        daisy chain, just start the chain with you SCSI adapter,
        then the HD to the adapter, and the CD-ROM to the HD. You
        end the chain with a SCSI terminator and you make sure the
        SCSI ID numbers are correct."

        Carsten Krumnow tells Nicholas (and Steve):

        "But it is possible though. For example when using to
        Megafile 44 drives (no sense in it, OK, but no problems with
        it). But it remains one SCSI system, so you are still
        limited to 8 devices."

        Dr. Uwe Seimet (the author of HD Driver) adds:

        "Basically this should be possible but you won't gain
        anything. A single adapter is sufficient to address all the
        devices." He's right, but there have been times when I've
        had two or more hard drives in their own separate cases
        which each had host adaptors that I wanted to use. It works
        fine. It's un-necessary, but it works.

        Our friend Dennis Bishop, who recently dropped his online
        service in favor of an ISP asks about MY favorite
        Email/FTP/UseNet reader... NEWSie:

        "I have a question, WHY does Newsie put TWO e-mails together
        at the same time??? I notice this today, I had e-mail from
        to places that are NOT the same place and Newsie had
        attached one to the other and had broken up the 2nd one mid
        way and put it as a <No Subject> after the 1st one. What's
        up? Is there some kind of a setting I need to check?"

        Roger Cain tells Dennis:

        "Yes, I used to get this. Rarely (about 5%) but it's a
        nuisance. I'm trying to remember how I fixed it .... ummmm I
        think it turned out to be a problem with the comms. layers
        rather than Newsie. Newsie was being sent some duff
        characters which it interpreted as 'End of Message' and, at
        other times interpreted a corrupt 'EOM' as something else.
        Have a careful look at bits of your comms system. You could

        Check your modem settings in SERIAL.CPX. You have RTS/CTS do
        you? How about the DTE rate? See if the problem goes away if
        you set it one notch lower.

        Check HSMODEM settings. Are your buffers 2K-4K? All other
        flags as recommended? What do you use - DRIVIN + MFP?

        Have faith - since I fixed it the problem has not

        Charles Silver tells Dennis:

        "Well, I don't think you have a NEWSie problem, necessarily.
        It sounds like STinG is dropping some packets which will
        cause all kinds of problems. In the STinG Dialer(Statistics)
        check to see how many dropped packets your getting after an
        online usage. Check Modem 1 or 2 that your using. You
        mentioned before you had trouble sending large files with
        NEWSie. I've sent/received 2meg binaries with no problems.
        Your might try sending yourself 4 or 5 test messages to see
        what's what. Your Mail Box may have been corrupted.

        I would upgrade to NEWSie v0.88 also. "EoF from Remote" can
        mean that you lost your news group feed, so you have to
        re-connect NEWSie to you host. It doesn't mean that STinG
        dropped your connection. Just re-connect NEWSie. My best
        guess is that you don't have STinG optimized for your ISP."

        The author of NEWSie, John Rojewski, tells Dennis:

        "Check your timeout values, I use about 20 seconds for Last
        Char and 30 seconds for Max Timeout. Sometimes there can be
        malformed emails, but that is pretty rare..."

        Oh, what the heck, let's make this "NEWSie Week". Alyre
        Chiasson posts:

        "I am running Newsie .88 and have run into the problem that
        despite having the remove mail from server option checked my
        mail is not removed from the server. Every few weeks I have
        to call to have them flush my inbox, which they have been
        kind enough to do so far. Does anyone else have this
        problem? Any suggestions? I suspect my ISP has changed his
        software, the problem wasn't there several weeks ago. Is
        there anything I can ask my ISP provider to do or switch to
        as far as a mail protocol? The problem was there when I was
        using a Slip account and also there now that I am using
        Sting and a PPP account. I have a MegaSte 4."

        Terry May tells Alyre:

        "I don't know what you can do with NEWSie, but you should be
        able to remove the mail yourself with POPwatch. A simple
        Control-A to select all files, followed by Delete will
        delete all the mail in your server's mail box."

        **By the way folks, I just started using POPWatch and I like
        it a lot. I'd like it a lot more if it worked correctly
        under Geneva though.

        Charles Silver echoes my own thoughts:

        "Well, I don't have that problem with NEWSie, but I always
        use POPWatch to preview e-mail as it has a very good
        killfile/delete. For me, I think the NEWSie/POPWatch is a
        *very* good combo as they both have very good features.
        Highly recommended..."

        Peter Smith asks about MagiC:

        "My Atari ST is still used every day in my business. I have
        programmed a nice database out of Superbase. I have a series
        of Auto-folder programs (LGSelect,QuickST, Cache, RamBuffer,
        etc) which make things a bit easier, but this Magic OS
        sounds interesting ... What is it like, what can it do, and
        where can i get it ?"

        Ian Norton tells Peter:

        "Well magic is probably the best and most used thing I have
        ever bought (except my falcon). It is a pre-emptive
        multitasking operating system (as stable as windows NT). The
        up side of having magic is that all your gem based stuff
        should (90% of) still works, although DSASE One doesn't
        work, I'm not sure about super base. Also and by far the
        best bit is that your programs will run much faster than
        normal as the OS is optimised in assembler, It will run from
        floppy disk but you really need a hard disk, you also really
        need 4mb of RAM on an ST and if you have a falcon you will
        after a month or three be craving for 14mb. Magic is very
        easy to get going but is sadly incompatible with some really
        cool autos and accs like mouse ka mania but it was well
        worth the 60.00 uk pounds that I paid for it!"

        Well folks, that's about it for this week. I'm going to go
        rub some of that nasty smelling salve on my neck in the
        hopes that it will drive away whatever demon is kicking my
        vertebrae this time. Tune in again next week, same time,
        same station, and be ready to listen to what they are saying

                             PEOPLE ARE TALKING

                             EDITORIAL QUICKIES

                             Lesser Primate Committee Thinking Experiment

                                Start with a cage containing five apes.
                    In the cage, hang a banana on a string and put stairs under it.

           Before long, an ape will go to the stairs and start to climb towards the Banana,
             but as soon as he touches the stairs, spray all of the apes with cold water.

                  After a while, another ape makes an attempt with the same result...
                             ...all the apes are sprayed with cold water.

                                       Turn off the cold water.

                          If, later, another ape tries to climb the stairs...
                the other apes will try to prevent it even though no water sprays them.

                   Now, remove one ape from the cage and replace it with a new one.
                      The new ape sees the banana and wants to climb the stairs.
                           To his horror, all of the other apes attack him.

After another attempt and attack, he knows that if he tries to climb the stairs, he will be assaulted.
             Next, remove another of the original five apes and replace it with a new one.

                           The newcomer goes to the stairs and is attacked.
                  The previous Newcomer takes part in the punishment with enthusiasm.

                         Again, replace a third original ape with a new one.

                      The new one makes it to the stairs and is attacked as well.

   Two of the four apes that beat him have no idea why they were not permitted to climb the stairs,
                    or why they are participating in the beating of the newest ape.

                          After replacing the fourth and fifth original apes,
                all the apes which have been sprayed with cold water have been replaced.

                   Nevertheless, no ape ever again approaches the stairs.  Why not?

                        "Because that's the way it's always been around here."

                                            Sound familiar?

                                                         ..........Thanks Binky, for another good one.

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