This report from ZDNet News claims that because the court ruling doesn’t address Microsoft’s handheld OS specifically, this leaves it in limbo for both Microsoft and the hardware manufacturers supporting it. The article states the potential exists for the Pocket PC “to escape the Microsoft product hierarchy, develop more quickly, and take a stronger position in the handheld market.” On the other hand, “It could also lose the confidence of the shrinking number of hardware manufacturers currently supporting it.”

Antitrust chief Joel Klein of the U.S. Justice Department has said the government is willing to negotiate with Microsoft, provided the negotiations are “meaningful” and deal with the company’s violations. Settlement may still be an option.

More information is available on Symantec announcing the development of the first anti-virus technology for the Palm OS platform. The new security prototype re-engineered Symantec’s anti-virus engine technologies to run on handheld computers and other portable applications.

BSQUARE Corporation announced that they have begun shipping an XML-based remote update software for intelligent computing devices based on the Windows CE operating system.The new CE Remote Updater is a software development kit designed to help equipment manufacturers create devices that can update software applications, device data, configuration, or the operating system itself from a remote location.

Jason Brooks from eWEEK Labs raves about the new PocketPC iPaq H3600 saying it combines “unmatched expandability and generous speed in a lightweight, power-efficient chassis.”

Here’s a story about how Microsoft’s employees are standing behind their boss. One Microsoft user interface designer describes the court’s decision by saying, “It’s pretty stupid.”

ZDNet News makes the case that the government-proposed conduct remedies will have “an equally far-reaching–and more immediate–impact on Microsoft, its partners and its competitors.” Unless Microsoft is granted a stay, the conduct remedies are due to go into affect in 90 days.

Microsoft President Steve Ballmer, meanwhile, has responded to the U.S. court ruling by claiming it was based on legal and factual errors and was inconsistent with a previous court ruling. Speaking at a press conference in the Netherlands, Ballmer said Judge Jackson ignored a two-year old appellate court ruling that found Microsoft did not act illegally in incorporating its Internet browser into its Windows 95 operating system.

Here is Bill Gates’ official response to the ruling in full.

Microsoft has responded by saying it plans to file its notice of appeal and motion to stay the order by U.S. District Court. “This is the beginning of a new chapter in this lawsuit,” said Bill Gates, Microsoft chairman and chief software architect. “We have a very strong case on appeal, and we look forward to resolving these issues through the appeals process and putting this case behind us once and for all.”