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Microsoft says it is pleased with the demand for Windows 7 as it reports an 18% fall in quarterly profits.

Windows 7 is hardly flawless, but here's an in-depth look at how Microsoft has changed its OS — mostly for the better .

Microsoft Corp. issued a record number of security patches for its software Tuesday as part of its regular monthly update. The software maker plugged 34 holes and designated most of them "critical," Microsoft's most severe rating. Among them are fixes for Windows Vista, Windows XP, Windows 2000 and even Windows 7, which doesn't go on sale to consumers until Oct. 22 but has been in use by early testers and software developers.

Recent concessions by Microsoft appear to address E.U. antitrust concerns, the competition commissioner said.

For the past decade, Microsoft researcher Gordon Bell has been moving the data from his brain onto computers -- where he knows it will be safe.

Microsoft will offer a free Web-based version of Office as it looks to compete with Internet-based software from Google and increased competition from "open source" products.

Microsoft sales fall in the first three months of 2009 - its first quarterly revenue drop since 1986.

The company has formed a cybersecurity posse with technology companies, academic organizations, and Internet infrastructure firms to dismantle the Conficker/Downandup worm's infrastructure.