Pricey Compaq Appliance Runs MSN

Net Appliance: Limited Functions, Mixed Benefit

Strengths of the system include a minimal boot time, easy-to-follow tutorials for Net novices, and shortcuts to popular services such as e-mail and MSN Messenger--MSN's instant messaging client. The user interface is a custom Internet Explorer 4.0 browser window with utilities such as mail, shopping, and MSN Messenger built in.

However, other devices that run the CE operating system typically bundle a host of applications such as a simple word processor and an address book. But Compaq offers only the Internet Explorer 4.0 browser.

The browser supports ActiveX plug-ins, including Macromedia Flash, and the Windows Media Player. Not surprisingly, the MSN Companion does not support the competing streaming standards marketed by RealNetworks. The system also doesn't support Java applications, commonly used in online games and Web-based applications. The MSN Companion does support Java scripts however, which allow you basic interaction with Web sites.

The Compaq Home Internet Appliance is not entirely static. Microsoft says devices are designed to connect to MSN's central servers once a day for updates to the software. Conceivably, Microsoft could send new applications and functions to the unit as well as patches and routine updates.

Targeting the Unwired

Microsoft aims the devices at the estimated 41 percent of non-PC households it hopes are eager to connect to the Net without the hassle of using a desktop PC. Microsoft and its hardware partners will face competition later this year from America Online and Gateway, which have codeveloped a similar device. The AOL/Gateway device will connect users to the AOL network. (See "Transmeta Tapped for Net Appliances." )

While Internet appliances have some boosters for the long run, they still face immediate major obstacles. The devices--including the newest IPaq--still carry a healthy price, especially compared with the dropping price of PCs. Also, vendors are still struggling to develop unique features and services to set Internet appliances apart from PCs.