An anonymous reader writes "The large print giveth, the small print taketh away. Microsoft, which recently laid off 1400 employees, is now claiming that some of those lucky schmoes were inadvertently overpaid on their severance package. A letter from the company, which was subsequently circulated on the internet, states: 'We ask that you repay the overpayment and sincerely apologize for any inconvenience to you.' Microsoft has confirmed the authenticity of the letter, but it's not known what the amounts in question are, or how many of the 1400 were affected." Update: 02/24 14:00 GMT by T : VinylRecords writes "Well, now Microsoft has recanted, saying that the situation has resulted in unfortunate amounts of bad press and public relations. 'This was a mistake on our part,' said a Microsoft spokesman in an e-mailed statement. 'We should have handled this situation in a more thoughtful manner.'"

David Burnett recommends an eWeek article on the leading contenders to make an iPhone out of an iPod Touch. Of course your newly phone-capable iTouch needs no activation and no binding carrier contract, just Wi-Fi. One of the companies working in this space, JaJah, is bundling the software with back-end services such as billing, so that carriers — or anyone really — can offer free-calling iTouch phones.

CWmike writes "Gregg Keizer sifted through many threads of e-mails released under the 'Vista Capable' lawsuit to dig up this jewel...More than a year before Windows Vista's release — and long before Apple started poking fun at the OS — Microsoft officials were already worried about comparisons between Mac OS X and Vista. An e-mail thread from October 2005 showed that an article in the Wall Street Journal by Walt Mossberg grabbed the attention of managers at Microsoft. In a column headlined What PC to Buy If You Are Planning On a Vista Upgrade, Mossberg alarmed one Windows manager who forwarded a bit from the column.... 'You won't have to worry about Vista if you buy one of Apple Computer's Macintosh computers, which don't run Windows,' Mossberg had written. 'Every mainstream consumer doing typical tasks should consider the Mac. Its operating system, called Tiger, is better and more secure than Windows XP, and already contains most of the key features promised for Vista.' Warrier added a comment of his own: 'A premium experience as defined by Walt = Apple. This is why we need to address [the column].'"

ma11achy was one of several readers to write about claims made by two former military intercept operators who worked for the NSA that "Despite pledges by President George W. Bush and American intelligence officials to the contrary, hundreds of US citizens overseas have been eavesdropped on as they called friends and family back home." Ars Technica has a brief report as well, and reader net_shaman adds a link to Glenn Greenwald's opinion piece on the eavesdropping at Salon.