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Ruston Panabaker, Microsoft's principal program manager of strategic silicon partnering, shows how later builds of Windows 7 were able to let the processor enter low-power states for longer periods of time, saving more power.

(Credit: Stephen Shankland/CNET)

SAN FRANCISCO--Upgrading a newer machine from Windows Vista to Windows 7 might mean that you get to see the last few minutes of that DVD on a long flight.

At a demo on Tuesday, Microsoft showed two identical laptops playing the same DVD, with the Windows 7-equipped notebook getting 20 percent better battery life than one running Windows Vista. In general, users can expect newer systems running Windows 7 to offer 10 percent to 20 percent better battery improvement when watching a DVD.

"We're achieving a very significant amount of battery savings," said Microsoft principal program manager Ruston Panabaker.

Microsoft and Intel declined to say just how much overall battery life improvement Windows 7 might offer as compared to Vista, saying there are too many factors that can influence such results.

"I don't want to state a number," Panabaker said at the event, which was organized by Intel and Microsoft.

Microsoft and Intel showed these power consumption improvements results for a system running Windows 7, left, and Vista. The left chart shows consumption while the system was idle; at right, when playing a DVD.

(Credit: Stephen Shankland/CNET)

The event was designed to outline the joint work that the two halves of Wintel have been doing to make Windows 7 perform better in areas such as virtualization, power management, and performance.

On the performance side, Microsoft and Intel showed a reference system that can boot up in 11 seconds, although again real-world performance is likely to vary a lot based on what's inside the PC and how well tuned it is. For instance, the system shown Tuesday had a solid-state drive and other high-performance componets.

The move comes as Microsoft gears up for the October 22 launch of Windows 7.

Perhaps the most encouraging thing for Microsoft is the fact that Intel itself is willing to use Windows 7 within its own corporate walls. The chipmaker has been an XP-only shop throughout Vista's life. In an interview here, Intel VP Stephen Smith said that Intel had some internal applications that weren't Vista-compatible and the benefits of moving to Vista didn't justify the costs.

By contrast, Smith said several hundred people inside Intel are already running Windows 7 on their corporate machines.

CNET News' Stephen Shankland contributed to this report.

Playing a DVD, a Windows Vista Ultimate system, left showed an estimated battery life of 4.14 hours, but the Windows 7 Ultimate system on the right showed 5.5 hours.

(Credit: Stephen Shankland/CNET)

While Microsoft's Windows 7 will go on sale in just about two months, there is still a little time to get a free copy of the operating system.

Well, at least a free test copy of Windows 7, anyway. Users have until Thursday morning to download the "release candidate" version of the software--the final test version of the operating system. It's a good option for those who have a spare machine to try out the software or for Mac users looking to experiment with running Windows either in virtualization software or via Boot Camp.

(Credit: Microsoft)

Microsoft has provided free, unlimited downloads of the release candidate version, but plans to halt distribution after Thursday (Update: I'm told the bits will stop flowing at 8 a.m. PT on Thursday, so I'd get started by tomorrow at the latest)

"After that date, you will still be able to register your product and get registration keys but, the media will no longer be available for download," Microsoft's Brandon LeBlanc said in a blog posting this week.

Even for those that get the software, the free ride only lasts so long. The release candidate will only work through early next year. The software will expire entirely on June 1 and, starting March 1, it will begin shutting down every two hours to remind users that the end is nigh.

As for the software itself, although it is not the final version, I used the release candidate for months and found it to be quite stable and reliable. For those who are looking to ultimately use the software, though, I recommend just biting the bullet and upgrading to the final release.

Folks will also want to remember that to move from the release candidate to the final version requires a clean installation of the operating system, meaning backing up one's data, reinstalling Windows 7, and then restoring the data and reinstalling any applications.

Microsoft said on Wednesday that it is looking into reports of a potential bug in the final version of Windows 7. However, Microsoft's top Windows executive said in a blog posting that the issue appears to be neither widespread, nor the "showstopper" that some are claiming it to be.

(Credit: Microsoft)

The issue, noted on several enthusiast sites this week, involves a fairly arcane process used to check for problems in a particular disk. Under certain scenarios, the site suggested Windows 7 would siphon off all the available memory to perform the scan, potentially crashing the system.

One report went so far as to characterize the issue as a potential "showstopper" that might derail the product's launch, while others such as ZDNet's Ed Bott have downplayed the threat.

However, in the discussion on one of the blogs, top Windows executive Steven Sinofsky said that the company is looking into the issue. But, he said that the company hasn't reproduced the crashing issue, nor has it gotten widespread reports of crashes.

"While we appreciate the drama of 'critical bug' and then the pickup of 'showstopper' that I've seen, we might take a step back and realize that this might not have that defcon level," Sinofsky wrote on the site. "Bugs that are so severe as to require immediate patches and attention would have to have no workarounds and would generally be such that a large set of people would run across them in the normal course of using their PC...So far this is not one of those issues."

Microsoft finalized the code for Windows 7 two weeks ago and is preparing to release it to developers in Microsoft's MSDN and Technet programs on Thursday, as well as make it available to some large businesses on Friday. Those plans are continuing, a Microsoft representative said on Wednesday.

The Microsoft representative also confirmed that Sinofsky's comments were authentic and that Microsoft was looking into the issue, but declined to comment further.

(Credit: Microsoft)

The wait for Windows 7 will soon be over--at least for those in Microsoft's MSDN and TechNet developer programs. Members of those two groups will have access to the new operating system starting on Thursday.

Another group--large businesses with volume license deals for Windows--will get access to the code on Friday, while other large businesses will be able to get the software starting September 1.

Consumers and small businesses, meanwhile, will have to wait until the product's official launch on October 22, when the product will start shipping on new computers and hit retail shelves.

Microsoft finalized the code for Windows 7 late last month. CNET colleague Seth Rosenblatt's official review of the operating system can be found here, and I've embedded his video review below.

Another date worth pointing out is August 20--the last day to download the free "release candidate" version of Windows 7. Although it won't last forever, it's a good way for those with some technical know-how to try out Windows 7 for free.

Microsoft on Wednesday said it has finalized the code for Windows 7, paving the way for the new operating system to make its way onto retail shelves and new PCs in time for its October 22 launch.

The software maker is hoping the response to the new operating system differs from the lukewarm reviews and compatibility challenges that marked the release of Windows Vista, which hit the market in January 2007. In contrast to Vista, Windows 7 has been marked by the company consistently hitting its deadlines and receiving largely positive feedback along the way.

"That is our final engineering milestone in what has been a three-year journey," said Mike Angiulo, general manager for planning in the Windows unit.

Windows 7 relies on the same underpinnings as Windows Vista, but adds a lot of features aimed at making the operating system both look and perform better.

Visually, it does a better job of managing open windows through an improved taskbar and a feature that lets users peek at one particular window or see the desktop that is hidden below all of the windows. On the performance side, it boots up and shuts down faster, and can run better on Netbooks and low-end machines.

Whereas Vista suffered several delays and saw its feature set change significantly in the years it was being developed and tested, Windows 7 looks very similar to the early developer preview version first shown at last October's professional developer conference.

"It feels great to be here on time," said Tami Reller, the Windows unit's chief financial officer, who recently added marketing responsibility for Windows as well.

Microsoft plans to offer Windows 7 in a number of different versions ranging from a low-end "starter edition" to an ultra-high-end "ultimate version." However, it expects most people in the U.S. and other developed markets to run either the Home Premium or Professional editions.

The company has been conservative in talking publicly about the product, waiting until features or dates were largely set in stone before discussing them widely.

Things were also fairly calm in the "shiproom"--the conference room inside Microsoft's Redmond headquarters where the Windows team meets to discuss outstanding bugs and issues before executives ultimately sign off on that the code is final.

(Credit: Microsoft)

With Vista--which was a more major update to Windows--it was a place of contentious debates up to the last minute about which issues needed to be fixed and which could be addressed later.

"When you are going through the end game, sometimes it is really bumpy; sometimes it is not," Angiulo said. "It's been really mellow this time."

Microsoft hasn't changed the code for Windows 7 since July 13, with much of the past 10 days spent just waiting to make sure long-term testing turned up no significant issues.

"After we produce a build, all the different teams will go through their test path," said Iain MacDonald, the general manager of the Windows Server unit. Microsoft also on Wednesday finalized the server version of Windows 7--a modest update known as Windows Server 2008 R2.

The actual build that Microsoft is using as the final one--build 7600.16385--has already leaked to the Web--several days ahead of Microsoft's confirmation that it was, in fact, the final version.

One of the last notable changes to Windows 7 was the incorporation of changes that were made to Windows as part of the last monthly "Patch Tuesday" bug fixes.

Angiulo said closer cooperation with computer makers, as well as the predictable schedule, has meant that a wide variety of new PCs should be ready to launch with Windows 7 in October.

"The (PC makers) have been working on a variety of systems--super-amazing thin and mobile systems," he said. "They are also working on really inexpensive low-end machines and all-in-ones.

Microsoft is also hoping, particularly since the underpinnings are similar to Vista, that users won't find the same sorts of compatibility issues that cropped up when that operating system first hit the market.

The entire PC ecosystem--from retailers like Best Buy to computer and hardware makers--are all hoping that Windows 7 can provide a boost to what has been a rough year.

"Our customers are very excited about Windows 7," Dell's Jim Ginger said. "We know because they tell us."

Update: Here's a video from Microsoft of the formal sign-off at Redmond.

Going from Windows Vista to Windows 7 is relatively straightforward. So one might think that moving from a pre-release version of Windows 7 to the final version would also be simple.

One would be wrong.

That's because the upgrade versions of the Windows operating system (the cheapest way to move to the final version) check for a previous, non-test version of Windows on the drive. That means, if a user did a clean installation of Windows 7 on their test system (as recommended by Microsoft), that same user will have to back up their data, reinstall their original operating system (XP or Vista), then install Windows 7, restore their data, and then reinstall their applications.

For testers who were running XP, that means doing a clean installation of Windows XP over their Windows 7 test build and then a clean installation of Windows 7 over that. Vista users have the option of reinstalling that operating system and then doing an in-place upgrade or a clean installation of Windows 7.

Testers looking to move from a test version of Windows 7 to the final product may find the move not only costly, but time consuming.

(Credit: Microsoft)

Microsoft says that, for what it's worth, that's roughly the same thing that was required for those moving from pre-release versions of Windows Vista to the final release.

Even so, it's an unfortunate burden for those who have provided lots of feedback and indeed been some of the operating system's biggest champions. Users were also pushed to do a fresh installation when moving from Windows 7 beta to the latest test version, although some users found ways around having to do this.

It's just one of several scenarios in which users may find getting to Windows 7 to be a tricky proposition. In general, most people get Windows through buying a new PC. But there are still plenty of folks who decide to update their existing machines.

That's proving to be tricky, not just for testers, but also for people who want to upgrade their Netbooks. That's because such machines, by their nature, don't come with a DVD drive. However, a source says Microsoft is considering offering Windows 7 via flash drive--a move that could make that upgrade easier.

Microsoft is also trying to lower the other barrier to those moving from a test version to the final Windows 7--the cost. The software maker has a limited promotion--through July 11 in the U.S.--that lets people buy an upgrade copy of Windows 7 for as low as $49.

As for those who haven't been testing Windows 7, Microsoft notes that the upgrade version of Windows 7 just looks for a copy of Windows XP or Vista, so users don't need to find their original system discs. It should be able to tell by looking at the hard drive.

Users can also use the upgrade as a chance to move to a higher-end or lower-end version of Windows. To move from Windows Vista Home Basic, for example, to Windows 7 Home Premium, a user need buy only the upgrade version of Windows 7. Likewise, one could move from Windows XP Home to Windows 7 Professional just by purchasing that upgrade version.

Moving down in versions is also possible, say from Windows Vista Ultimate to Windows 7 Professional. However, with any downgrade, a clean installation is required.

Although Windows 7 won't go on sale until October, Microsoft is actually slated to be done with the code that ships on those first PCs within a couple of weeks.

Some enthusiast sites are predicting that Microsoft will peg the release-to-manufacturing date of Windows 7 to July 13, the start of the company's Worldwide Partner Conference. A report on GeekSmack.net suggests that Microsoft will finish the OS by the 13th and post the software to its MSDN and TechNet developer sites shortly thereafter.

(Credit: Microsoft)

Although the timing would certainly be convenient, it's also the case that Microsoft is primarily focused on making sure it has stamped out any last-minute bugs.

Microsoft said when it announced the October ship date for Windows 7 that it would have to finalize the code and get it to computer makers by the second half of July.

To meet that goal, Microsoft is no doubt doing long-term regression testing on any builds it thinks could be the final one.

Another Windows 7 date to keep in mind is July 11. That's when Microsoft plans to end a preorder program through which people can buy an upgrade version of Windows 7 Home Premium for $49 or Windows 7 Professional for $99. The software maker has also said that preorders could end earlier if it hits a predetermined sales level, although it hasn't said how many copies it is willing to sell.

The preorder program has been a hit on Amazon, where the Home Premium upgrade remains the top seller in both the software section as well as the overall "computers and add-ons" category.

Microsoft appears likely to offer a "Family Pack" version of Windows 7, according to language in a leaked test version of the operating system.

This week enthusiasts started buzzing over wording in the license agreement in the test build that suggests Microsoft will have an option to buy a license for Windows 7 that covers up to three PCs in the same household.

Wording in a leaked test version of Windows 7 suggests that a long-anticipated Family Pack option may become reality.

(Credit: Microsoft)

According to blogger Kristan Kenney, the license agreement included with the recently leaked version states that "if you are a 'Qualified Family Pack User', you may install one copy of the software marked as 'Family Pack' on three computers in your household for use by people who reside there."

Microsoft would neither confirm nor deny that it plans to offer the family pack.

"We will continue to work with our partners and expect to have other great offers in the future as we lead up to and beyond general availability," a representative said. "We have nothing to announce at this time."

Since 2002, Apple has offered a Mac OS X family pack that covers up to five Macs in the same house. Microsoft briefly offered a deal with Windows Vista that allowed Vista Ultimate buyers to purchase discounted copies of Vista Home Premium for additional PCs, but discontinued that offer after just a few months.

Vista Ultimate users are already upset that Microsoft's first discount offer for Windows 7 allows for discounted upgrades to Windows 7 Home Premium and Professional, but offers no upgrade options for them. Microsoft said it may have more offers, but users will have to gamble if they want to skip the current pre-order program.

That option allows $49 upgrades to Windows 7 Home Premium and $99 upgrades to Windows 7 Professional. Microsoft said that those deals will be offered only until July 11.

Windows 7 is slated to arrive on store shelves and new PCs on Oct. 22.

While it's true Windows 7 doesn't arrive on retail shelves and new PCs until October, Microsoft has announced two programs designed to give a head start to those who know they want the new operating system.

The Windows Upgrade Option, which runs through early next year, allows those buying a new Vista PC to get a free copy of Windows 7 after it hits shelves in October. The other program, which runs only through July 11, allows Windows XP and Vista users to pre-order a copy of Windows 7 Home Premium for $49 or Windows 7 Professional for $99.

(Credit: Microsoft)

In the following question-and-answer post, CNET News' Ina Fried walks you through both programs.

Who qualifies for the pre-order program?
All those who are running Windows XP or Windows Vista on their system, and whose PC is capable of running Windows 7, can upgrade that machine to Windows 7 Home Premium or Windows 7 Professional using the Windows pre-order program. However, the program is limited in both time (it runs through July 11 in the U.S.) and in terms of how many copies Microsoft will sell, although the company has not said what that limit is exactly.

Can I buy one of the upgrades if I am running Windows Vista Ultimate?
A lot of folks have been asking this since Microsoft isn't offering a discounted way to buy Windows 7 Ultimate. The answer is yes, one can buy an upgrade. However, any time one moves "down" in editions as part of an upgrade, it requires a clean installation of the operating system.

Will I get both 32-bit and 64-bit versions of the operating system?
Yes, although moving from a 32-bit version to a 64-bit version (or vice-versa) also requires a clean installation of the operating system.

How does the Windows 7 Upgrade Option program work?
Microsoft's other program, aimed at new PC buyers, gives those who buy certain Vista machines between June 26 and the end of January the ability to get a free copy of Windows 7.

The update will be provided after Windows 7 ships on October 22. Different partners are handling it different ways, with some offering the upgrade on DVD, others via download, and some PC makers offering both means.

Is it really free?
Well, Microsoft says it isn't charging the computer makers or retailers, though in some cases the PC makers themselves are tacking on a shipping and handling charge for mailing the updates.

Do all Vista PCs qualify?
No. In general, PCs with Vista Home Premium, Vista Business, or Vista Ultimate will qualify for the program. Buyers should check with their retailer or PC maker beforehand to make sure the PC is among those that qualify.

Many of the PC makers have posted more information on their Web site, including Acer, Asus, Dell, Emachines, Fujitsu, Gateway, Hewlett-Packard, Lenovo, Sony and Toshiba.

What about Netbooks?
A few Netbooks may qualify if they were running Windows Vista Business or Windows Vista Home Premium. Microsoft is still looking at options for how folks running those systems will be able to load the operating system onto their machines, which don't have CD or DVD drives. (Netbooks running Windows XP, like other XP machines, can use an upgrade version of Windows 7, though users will have to do a clean installation of the operating system.)

Is there a limit to how many computers qualify for the update program?
Yes, the program covers a maximum of 25 PCs for an organization. Microsoft says the program is designed for consumers and small businesses and notes the limit of five machines under a similar program with Windows Vista has been lifted.

Gartner analyst Michael Silver said that big businesses should press computer makers to extend the upgrade to cover any large orders between now and when Windows 7 ships. Otherwise, the only way for businesses to be covered is to purchase one of Microsoft's volume licensing programs for Windows, such as Software Assurance.

"Microsoft is encouraging organizations to buy (Software Assurance) and those that don't will need to deal with these artificial, annoying rules," Silver said.

What about those who bought Vista PC before June 26?
Again, I've gotten a lot of e-mail from owners of older Vista machines, including some that are only a few weeks or months old, wondering where their free copy of Windows 7 is. Well, the Upgrade Option only kicked in last week, so owners of older machines won't be getting a free copy. The pre-order program probably offers the cheapest option as far as getting to Windows 7.

Update: Among the questions I was asked most frequently was whether someone could move from a version of Windows XP or Vista to a different version of Windows 7. In all combinations, the answer is yes, and it can be done using the cheaper upgrade version of the operating system, though in some cases a clean installation of Windows 7 may be required.

If you are moving from Windows Vista to the same or higher version of Windows 7 and not changing from 32-bit to 64-bit, you can do what is known as an upgrade-in-place, which transfers your existing set-up to Windows 7, preserving all your settings and favorites.

If you are going to a lower-end version of Windows 7, coming from Windows XP or moving from 32-bit to 64-bit (or vice versa), you need to do a clean installation, which means backing up your data, installing the new operating system and then restoring your data and reinstalling your applications.