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Microsoft has had it with Yahoo's stalling tactics. Over the weekend Steve Ballmer sent the search giant a letter giving them three weeks to cut a deal, or face a hostile takeover effort. Yahoo, of course, thinks the 62% premium Microsoft offers seriously undervalues their company.

Microsoft is killing Windows XP (after one stay of execution) for all but super-cheap PC's like the eeePC and the Intel Classmate.

Meanwhile Bill Gates has dropped a tantalizing hint that Windows 7 (the unloved Vista's eventual replacement) may show up as early as next year.

Apple is suddenly America's leading music seller. In fact they're already 50% bigger than BestBuy, after trailing the retail giant as recently as November. This is all the more impressive when you consider that over 70% of music sales are still physical, and Apple only sells downloads.

Meanwhile MySpace music is heading to a huge new level. The company's setting up a joint venture with most of the major music labels - and doing this has cost them plenty. The service will also sell ringtones, tickets, and other goodies.

A new report shows that Craiglist is making a fortune with only 25 employees. And this pales in comparison to the cash they could be making if they charged for everything that people would probably pay for.

AT&T's CEO drops hints that next-generation iPhone - one that will actually run at 3G speeds - is only a couple months off.

South Park just ran an episode dedicated to making fun of the concept of making money online, featuring spoofs of many of your favorite viral video stars. The whole episode is available at their site for free.