On Thursday, Microsoft officials admitted that Office 2007 is running behind schedule. Office 2007 will still RTM this year, they said, but now instead of promising a January 2007 launch, Microsoft is simply committing to an 'early 2007' Office 2007 release. Is Vista likely to slip, too? Microsoft says no - so far.

Developer and partner sources have been skeptical whether Microsoft can meet the Vista targets it outlined in March. Some said they were encouraged by the improvements in the latest Vista test build, Number 5456, which Microsoft released on June 23. But others said they were doubtful that Microsoft could make all the fixes required to release Vista to manufacturing this fall.

"If it (Vista) is delayed another month, they can still get it to OEMs to be out by January," said one Windows tester, who requested anonymity. "If it is longer than that... well, they already missed the holiday season. I just want it to be rock solid, and if that means January - March 2007, well so be it."