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Spy Agency Removes Illegal Tracking Files — By The Associated Press The National Security Agency's Internet site has been placing files on visitors' computers that can track their Web surfing activity despite strict federal rules banning most files of that type.
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Amazon Hosting Author Blogs — Adding to its user-generated content, Amazon.com has launched a program to allow authors to blog on the Amazon.com site. — The Amazon Connect program, in beta for the past month, aims to increase the engagement between readers and authors, and between readers and Amazon.com.

Microsoft Security Advisory (912840) — Vulnerability in Graphics Rendering Engine Could Allow Remote Code Execution. — Microsoft is investigating new public reports of a possible vulnerability in Windows. Microsoft will continue to investigate the public reports to help provide additional guidance for customers.
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Hackers Rebel Against Spy Cams — BERLIN — When the Austrian government passed a law this year allowing police to install closed-circuit surveillance cameras in public spaces without a court order, the Austrian civil liberties group Quintessenz vowed to watch the watchers.

10 Greatest Gadget Ideas of the Year — ON New Year's Eve, don't be surprised to witness more heartfelt celebrating than usual; 2005 was not a year noted for its tidings of good cheer, and plenty of people will be happy to see it go. — Still, there were inspiring and gratifying success stories …

Curling Up With a Good E-Book — Is the iPod of e-readers at hand? Previous models haven't caught the public's fancy, but some major publishers seem to think Sony is about to change that — Can Sony make the iPod of digital books? That's the plan. At the Consumer Electronics Show …

John Battelle Talks to Performancing about FM Publishing — Over the holidays I had a chance to talk to John Battelle of FM Publishing, a new but much discussed blog ad network that's currently in beta. FM has a whole bunch of high profile bloggers working with it already …

Preliminary Settlement Filed in Sony Suit — Lawyers in a class action lawsuit filed against Sony BMG, First 4 Internet and SunnComm last month have submitted a preliminary settlement, which calls for Sony to stop manufacturing CDs with XCP and MediaMax DRM, provide replacement discs, and make cash payments to affected customers.
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TechBlog
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Online Ad Growth Accelerates, Outpacing Newspaper, TV Spending — Dec. 28 (Bloomberg) — The move to online advertising is happening faster than analysts anticipated as companies devote more of their budgets to the Internet than traditional media. — The market for online ads …

Offspring in Charge, and Ma Bell Gets a Makeover — NO one will ever fault the new AT&T for not having big ambitions. — AT&T became the country's largest phone company in November when SBC Communications, one of the original seven Baby Bells, bought AT&T, the old Ma Bell.
Discussion:
IP Democracy

"Absolutely terrifying" flight after ground-crew mistake — Alaska Airlines Flight 536 was 20 minutes out of Seattle and heading for Burbank, Calif., Monday afternoon when a thunderous blast rocked the plane. — Passengers gasped for air and grabbed their oxygen masks as the plane dropped …
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CyberJournalist.net
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Google Base Switches To Force All Searchers Through Jump Pages — When Google Base first launched, one of my key questions was whether people could click on a entry and go directly to the submitter's web site. Yes, you could. Now, you can't. Instead, you're forced to go through a …

'Ear bud' headphones can cause hearing loss, experts warn — All those ears ringing from newly gifted iPods and MP3 players may not be able to hear next year's Christmas bells as well if music lovers aren't careful, hearing specialists are warning. — "We're seeing the kind of hearing loss …
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The Consumerist

INTERVIEW: FOR AOL/GOOGLE, THE DEVIL IS IN THE DETAILS — I had a good conversation with Marissa Mayer this morning, who had the unfortunate task of clarifying the terms of Google's recent deal with AOL. I say unfortunate for two reasons: one, I did sort of call her out after her post went up …
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Magnatune's Answer to the Music Problem — Magnatune, founded by John Buckman in 2003, is a music label with an associated website. Today was the first time I heard about Magnatune (thanks to Ajay Juneja), but I agree entirely with their business philosophy. I really think this is the music business model of the future.
Discussion:
Darwinian Web

MSN Video Brings New York City Times Square New Year's Eve Celebration to Worldwide Audience Online — Provides viewers with party coverage, live performances and a number of exclusive online entertainment appearances; real-time experience to be provided by as many as 26 cameras …