What's hot in the PC side of things (well, the Windows side of the PC side, that is)? It's what you've been waiting for, Windows gamer. At this year's D: All Things Digital, Bill Gates and Steve Ballmer of Microsoft have demoed one of the new facets of Windows 7 in front of an audience that once witnessed the one-on-one between Gates and Jobs. And guess what? Windows 7's new features starts off with touch.

If you're one to collect special-edition units, get ready to drool over this baby: Microsoft recently commissioned a talented artisan to whip up black lacquered Xbox 360 units inlaid with mother of pearl. It's just about the only Xbox 360 unit that all mothers will approve. See the image in the full article.

Microsoft's next-gen console might have a bright future in Japan, according to Bill Gates. Though it might have failed to take the lead against its competitors in Japan, the online service might be able to kickstart changes in the region. Details after the jump!

It's about time: Windows Vista's successor is scheduled to hit the streets a year ahead of schedule. According to Microsoft founder Bill Gates Windows 7, formerly known as Vienna, will be released sometime next year. Will the computing world be ready? Read more in the full article.

What do you do when you water-damage your MacBook Pro? One owner learned the hard way that a)  you should not water-damage your Pro, and b) do not email Steve Jobs for help about it. Looks like somebody got a dressing down there. To find out what happened, check out the full story after the jump.

Remember Nathaniel? He's the guy who lost his artwork and autograph loaded Xbox 360 to a tragic washing when he sent it in for repairs. Microsoft, who had been silent after contacting him only once after the incident, finally made things right. They sent him a huge cardboard box loaded with everything but the kitchen sink (because it was too heavy). Details in the full article.

Ever dreamed of creating the best video game? Microsoft and Bill Gates are going to give you a boost towards the realization of your dream with their latest project, Microsoft DreamSpark. Microsoft DreamSpark lets students get their hands of as bunch of game design and developing tools including XNA Game Studio 2.0...for free. Read more about it in the full article.

Last month, one gamer's Xbox 360 unit hits rock bottom. Instead of picking up the phone and calling customer care, he sends an email to none other than Bill Gates himself. The result? A brand new unit in a record time of 24 hours. While it is a feat worthy of jubilation among gamers alike, Microsoft wasn't all too happy about it.

Read on to the full article to see what their official statement was about who you should contact in cases of unit failures. You canbet Bill Gates isn't one of them.

Microsoft co-founder and chairman Bill Gates was recently interviewed about what he thinks will happen to ally format HD-DVD after Warner Bros. decided to go exclusive to Blu-ray. Gates gave an interesting response which seems to point to a totally new direction. Will the format war have a rival of its own? Find out in the full article and tell us what you think.

The partnership between BT Group and Microsoft has been rumored many times before ever since big MS announced IPTV for the Xbox 360. Given the services and functions of the two, one can't really help but see the connection.

Those rumors come to a close today as Microsoft finally confirmed the partnership during CES 2008. More details after the jump!