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TOP STORIES FOR WEDNESDAY, AUGUST 16, 2006
  MS Windows Flaws Again Targeted by Hackers
  MS Security Update Needs an Update
  Appeals Court Supports FCC Rule on High-Speed Lines
  Encryption for Mobile Phones


MS WINDOWS FLAWS AGAIN TARGETED BY HACKERS
Security companies have identified a new worm circulating that seeks to
take advantage of a flaw in the Windows operating system and allows
hackers to use infected computers to send spam. Earlier this month,
Microsoft issued a patch for 23 vulnerabilities, including the one that
the new worm uses. Because the patch has only been available for a
week, however, experts said many computers are likely still at risk for
the malicious code. Infected computers can be used as spam
proxies--computers that send millions of junk e-mails on behalf of
spammers. Many spammers are resorting to this sort of approach because
ISPs are increasingly unwilling to host such e-mail campaigns.
BBC, 16 August 2006
http://news.bbc.co.uk/2/hi/technology/4797949.stm

MS SECURITY UPDATE NEEDS AN UPDATE
Microsoft acknowledged that a patch issued earlier this month for
significant flaws in its operating system has led to new problems for
some users. Computers that installed the August patch on Windows 2000
or Windows XP machines with Service Pack 1 and Internet Explorer 6 are
experiencing browser crashes when they visit Web sites that use HTTP
1.1 and compression. Fred Dunn, a systems administrator at the
University of Texas Health Science Center at San Antonio, said that at
his institution, computers with the patch are crashing when users
access pages in PeopleSoft applications. The workaround, he said, is to
disable the compression in the PeopleSoft applications, which slows
performance considerably. Microsoft said that on August 22 it would
issue a new patch to replace the patch that is causing these problems.
ZDNet, 16 August 2006
http://news.zdnet.com/2100-1009_22-6106039.html

APPEALS COURT SUPPORTS FCC RULE ON HIGH-SPEED LINES
A federal appeals court has turned down an appeal of a decision by the
Federal Communications Commission (FCC) that exempted certain kinds of
telecom lines from regulations that require companies to lease access
to rivals. A law passed in 1996 forces telecom companies to unbundle
local phone networks and allow competitors to buy access to them. The
FCC ruled that this requirement should not apply to certain lines,
including new fiber-optic lines to residential customers, because
requiring such sharing would discourage companies from making
investments in this kind of infrastructure. EarthLink challenged the
ruling, but the appeals court sided with the FCC, giving a boost to
companies including AT&T and Verizon.
Wall Street Journal, 16 August 2006
http://online.wsj.com/article/SB115569776929237003.html

ENCRYPTION FOR MOBILE PHONES
A British company said it has developed technology that encrypts
transmissions on cell phones, allowing users to make calls with
confidence that their conversations cannot be intercepted. One Day
Mobile reportedly developed the technology with German company Safe.com
and with the military. With the software, which must be installed on
cell phones, users can decide which of their calls will be encrypted.
Encrypted calls are sent over the data network, however, rather than
the voice network, which can result in decreased performance. Voice
networks are built to ensure smooth and fast transmission, but using
the data network to transfer voice traffic can be slower and bumpier
and can impose delays.
The Register, 16 August 2006
http://www.theregister.co.uk/2006/08/16/mobile_encryption/

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