NYGiant writes "Microsoft IPTV isn't cutting it for Verizon, Ars Technica reports, so they've taken over parts of the project. Verizon is in a rush to perfect its IPTV service, which is based on Microsoft's IPTV software. The problem is that to run well, Microsoft's software needs more memory than Verizon's set top boxes ship with. From the article: 'Under the terms of that deal, Verizon would use Microsoft's Foundation Edition middleware stack. Microsoft would also supply a set of customer-facing applications. While Foundation Edition remains in use by Verizon, the development of the other applications was taken over by Verizon engineers.'"