Palm, Inc. and Handspring Inc. announced that Handspring has extended its license of the Palm OS. Under the terms of a new agreement reached this week, Handspring can continue to develop and market products based on the Palm OS through April 2009. Financial terms were not disclosed.

SystemLogic.net has posted a review of the Blocks Products eyemodule 2, an add-on for the Handspring Visor that adds black & white as well as color digital camera shots and video capabilities.

Llamagraphics announced Life Balance 2.6.1 which provides an important fix to a ROM specific error on some devices, including the Sony CLIE, where Life Balance 2.6 was apparently triggering a “fatal exception” error in Palm OS 3.5.2. Once 2.6.1 is installed, Life Balance will resume normal stable operation on affected devices.

Qvadis announced that Metal Men, by A. Craig Copetas, is their Palm eBook-of-the-Month for April 2001. This is the story of Marc Rich, recent recipient of one of the most controversial presidential pardons in history. He amassed a $10B dollar fortune in commodities trading, but his companies eventually pleaded guilty to 38 counts of tax evasion, paying $90 million in fines. Rich fled to Switzerland, where he faced a potential jail term of over 300 years if he ever returned to the United States.

XcelleNet, Inc. announced its Afaria solution, a native client solution for managing data and applications on the Palm VII wireless platform, including full support of the Palm.Net Wireless Communication Service.

Digital Airways has announced the immediate availability of Wapaka, a WAP micro-browser entirely written in Java for the Palm OS platform.

CNET News.com reports Handspring named former Federal Communications Commission Chairman William Kennard to its board Tuesday, just three months after he stepped down from the agency.

ZDNet has an article on the cash problems analysts are predicting for Palm due to a stockpile of inventory. According to the article, “Morgan Stanley analyst Gillian Munson said in a research note that the $200 million in inventory expected to accumulate this quarter and a projected $80 million to $85 million operating loss threaten to halve the company’s $595 million in unrestricted cash.”

E Ink Corporation announced that it has demonstrated its active matrix electronic ink display designed to produce high resolution illustrations and text.

Wired.com has an article on ebook sites around the Web.