Marvel Comics revives Capt. America

LOS ANGELES - It turns out you can't keep a good man down — or even dead and buried — when he wears a red, white and blue uniform and calls himself Captain America.
Marvel Comics, which killed off the veteran superhero almost a year ago, brought him back to life Wednesday — sort of.

Captain America's alter-ego, Steve Rogers, is still resting in peace at Arlington National Cemetery, having been done in by assassins last March. But his good buddy and sidekick from the 1940s, Bucky Barnes, has picked up the bulletproof Captain America shield, put on a new uniform and taken his place.

What's that you say? Wouldn't Bucky be about 85 years old now? And without any real super powers to fall back on, isn't that kind of long in the tooth to be taking a bite out of crime?

Well, yeah. But remember, this is the comic book world we're talking about. Bucky was put in suspended animation by the evil Russians (back when they were evil) and stayed that way for the better part of 60 years.

"So he's probably in his late 20s right now," jokes Marvel Editor in Chief Joe Quesada, who decided to promote him to Captain America.

Rogers' old sidekick had already returned to the Marvel pantheon of heroes some time back as the rugged Winter Soldier, redeeming himself for the years he'd spent under the control of the bad guys, who would occasionally thaw him out for evil deeds.

"We were toying with the idea of someone new taking over the mantle of Captain America," Quesada said by phone from his New York office. "But we kept coming back to Bucky. Not only because he seemed such an obvious choice but especially because of the fact that when we brought him back as the Winter Soldier he was so incredibly popular."

Barnes never swallowed the "Super Soldier Serum" that transformed the wimpy Rogers into the super-strong Captain America in the months before World War II. So he's at a bit of a disadvantage in his new role. But he's bulked up himself over the years, become a master at special operations and he's also packing some serious heat these days along with that mask and shield.

But forget about defeating enemies in the fantasy world. The people he will really have to win over are those notoriously finicky comic book readers.

Quesada says he isn't worried, however, adding that killing off Captain America last year seemed to give him new life with readers. The editor was taken aback when newspapers even carried obituaries on the character.

"Not since the 1940s have we seen Cap being this popular," he said.

Celeb news show won't run Ledger video

NEW YORK - "Entertainment Tonight" says it won't air a video it has acquired that shows the late Heath Ledger at a Hollywood party where drugs were apparently being taken.

The syndicated magazine's sister show, "The Insider," aired a "preview" of the video Wednesday that showed an unidentified man apparently snorting cocaine. The show said, however, that the video does not show Ledger doing drugs.

"Out of respect for Heath Ledger's family, `Entertainment Tonight' and `The Insider' have decided not to run the Heath Ledger video that has been circulating in the world media," said a posting on the Web sites Thursday.

Ledger, 28, died in his Manhattan apartment Jan. 22. The cause of his death will likely be known within days, after medical examiners complete toxicology tests.

Authorities suspect a possible drug overdose, but nothing conclusive has been determined. Several prescription drugs were found in the Manhattan apartment where the "Brokeback Mountain" actor's body was found.

"The Insider" ran a fairly extensive "preview" of the video Wednesday. It showed Ledger in the doorway of a room in the Chateau Marmont hotel where a party was taking place.

The video shows a man, his face blurred, seeming to snort cocaine from a table. Ledger said that he was "going to get serious (word bleeped) from my girlfriend" for being at the party.

It also shows him rolling cigarette paper. He was heard saying "I used to smoke five joints a day for 20 years." The show also quotes Drew Pinsky, star of VH1's "Celebrity Rehab With Dr. Drew," saying he had seen the video and it was "heartbreaking."

Beyond the cigarette paper, the video shows Ledger taking a slug from a beer. There have been a number of media reports quoting people who said Ledger used drugs.

The Hollywood community put pressure on the syndicated programs not to air the material. A statement spread through Hollywood by Ledger's public relations firm called the video "shameful exploitation of the lowest kind."

It said that "Entertainment Tonight" purchased the video for "a large sum of money in the hopes of stirring up a salacious and exploitive story about Heath."

The PR firm, ID PR, also represents Ledger's "Brokeback Mountain" co-star Jake Gyllenhaal and stars like Robin Williams and Natalie Portman. For the syndicated magazine shows, access to stars is like oxygen.

Officer: Spears taken to 'get help'

LOS ANGELES - Britney Spears was taken from her home by ambulance early Thursday and escorted to the hospital by more than a dozen police officers in cars, on motorcycles and in helicopters.

The 26-year-old pop star was being taken to "get help," said a Los Angeles police officer, who spoke on condition of anonymity because he was not authorized to speak on the matter. The Los Angeles Times cited unidentified authorities who said Spears was being placed on a "mental evaluation hold."

Spears was taken to UCLA Medical Center, where her mother, Lynne, was seen leaving its psychiatric hospital at about 5:30 a.m. When asked by a throng of paparazzi and reporters whether Britney was doing all right, Lynne Spears replied, "Yeah," before leaving in a Range Rover.

Hours earlier, shortly after 1 a.m., a motorcade nearly the length of a football field pulled away from Spears' residence. Along with the ambulance, it included police on nearly a dozen motorcycles, in two cruisers, and two helicopters following overhead.

The scene was more controlled than the one earlier this month when Spears also was taken away from her home in an ambulance. On Jan. 3, police were called to her home when she refused to return her two young sons, Sean Preston, 2, and Jayden James, 1, to ex-husband Kevin Federline, who has custody.

Officers had paramedics haul Spears to a hospital for undisclosed reasons. She was released after a day and a half in Cedars-Sinai Medical Center.

Subsequently, the Superior Court commissioner handling the custody case held a closed hearing that included exhibits including a "photocopy of Application for 72-hour Detention for Evaluation and Treatment." All exhibits were sealed.

Police also went to Spears' hilltop residence off Mulholland Drive on Monday night after someone reported a swarm of paparazzi trespassing in the singer's gated community. When officers arrived, they didn't see anyone trespassing, police said, but citations were issued for several illegally parked cars.

Spears has been in a highly public downward spiral since filing for divorce from Federline in November 2006. Her bizarre antics include shaving her head bald, attacking a car with an umbrella and bringing along a paparazzo pal on trips to a courthouse in her child custody case.

Spears' child custody case has become a public spectacle, with her skipping depositions and twice this month arriving at the courthouse but not attending the hearing.

The most recent incident was last week, when Spears showed up at the downtown civil courts building for a chance to persuade a Superior Court commissioner to change his order and allow her to see her sons.

Dressed as if arriving for a cocktail party — wearing bright pink lipstick, sunglasses, shiny gold platform shoes and a very short black dress with a ruffled hem — Spears was driven into an underground garage and then entered the courthouse.

A court spokesman said she got through a security metal detector, then announced, "I want to leave," and returned to her car.

Santana trade opens market for free agent pitchers

The Red Sox and Yankees are used to always getting their man, but with the New York Mets expecting to sign Johan Santana to a contract extension Friday that will finalize their trade with Minnesota, it has left Boston and New York in radically different moods.

In Boston there is relief Santana is going to the Mets, and not the Yankees, their hated archrival.

In the Yankees' offices, any similar feelings turned to angst, knowing Santana will still be a nagging reminder while playing one borough away.

"Pain is a part of this game," Yankees general manager Brian Cashman said. "Playing here in New York, there is always pain. There are always distractions. It's just part of our daily existence.

"The only time I feel any nirvana is when the commissioner is handing the trophy our way."

The Mets, according to a high-ranking official privy to the negotiations, are close to agreeing to a five- or six-year contract extension with Santana that will average about $21.5 million a year. The two sides have until 5 p.m. ET Friday to reach an agreement.

Phillies solidify hot corner with Feliz

PHILADELPHIA -- Third baseman Pedro Feliz toiled in obscurity while playing in San Francisco for all of this century, while a certain controversial slugger shattered Hank Aaron's all-time home run mark.

Thousands of miles away, on a different coast and with a new team, Feliz may enjoy the same relative anonymity as a member of a stacked infield that is arguably the best foursome in the National League.

It's hard to stand above when two members of that quartet have won the past two NL Most Valuable Player Awards, and the other is the league's best second baseman. But being an unknown is fine with Feliz.

"It's a winning team with a lot of great hitters," Feliz said Thursday, in his introduction to the Philadelphia media, two days after agreeing to a two-year contract worth $8.5 million. "They're going to be defending a [National League East] championship, and it's going to be exciting. We have a lot of talent and it's going to a fun competition."

Feliz, who will turn 33 in April, hit .253 with 20 homers and 72 RBIs with the Giants in 2007, including a .310 batting average with runners in scoring position. He adds right-handed punch to the Phillies' lineup. The right-handed hitter's deal includes performance bonuses and a team option for 2010.

The signing comes after an on-again, off-again pursuit by the Phillies that has roots at the Winter Meetings. Feliz, who bears a strong resemblance to Yankees closer Mariano Rivera, signed with the Giants in 1994 as an 18-year-old third baseman. He participated in the 2002 World Series, a loss to the Angels in seven games.

In a perfect world, Feliz would've remained by the Bay.

"The process went a long way," he said. "It didn't work out with San Francisco. I enjoyed being there for 14 years, and now I get to find another place to be happy. I don't know [why the Giants didn't try harder to keep me], but I would like to. The only thing now is that I'm in a new place and I have a new team."

The Giants had made Feliz an offer. Though it was believed to be for more money, it didn't include an option for a third year.

"After we made a two-year offer and it was dismissed out of hand, we felt we needed to move on," Giants GM Brian Sabean told the San Francisco Chronicle.

That was fine with the Phillies, who grew more optimistic each day.

"He was still out there, we could fit him on the payroll and it seemed like the right thing to do for us, so we moved forward," assistant general manager Ruben Amaro Jr. said.

Feliz has, too, joining the Phillies. As the NL's best fielding third baseman, he'll also solidify the defense. His signing squashes the expected platoon of Greg Dobbs and Wes Helms, with Helms likely to be dealt by Opening Day.

"We have a lot of bodies [at third] and we have to work through it," Amaro said, "but we'll let [manager] Charlie [Manuel] pencil Pedro in at third base. Spring Training has a way of working things out."

Giants Make Statements of Fashion and Confidence

Most of the Giants wore their white jerseys with big, red numerals Thursday morning when they met with the news media for the final time before Super Bowl XLII.

But defensive end Osi Umenyiora wore a new, white T-shirt that displayed the Giants’ slogan for this season: “Talk is cheap. Play the game.” The words were in the team’s colors of red and blue with a Super Bowl logo above them and a “NY” logo below.

“This is my motto from here on out,” Umenyiora said at the media availability at the team’s hotel. He appeared to be the only Giants player wearing the shirt, which was distributed throughout the locker room on Wednesday.

Umenyiora quickly added that he had said too much recently when he labeled Patriots offensive tackle Matt Light a dirty player.

“Matter of fact, I want to apologize to Matt Light for calling him a dirty player,” Umenyiora said. “He’s really not a dirty player at all. I apologize. That’s my fault.”

Umenyiora had a serious expression on his face, but it was hard to tell whether he was being serious or playful. When a reporter said he was from a Boston television station, Umenyiora turned toward the camera.

“I’m sorry, Matt Light,” he said. “I didn’t mean anything by that to cause this whole ruckus. We’ll see each other on Sunday and settle all our differences. Sorry. I love you. Take care, buddy.”

Words — some casual or flippant — can take on exaggerated meanings before a game of this magnitude. Such was the case earlier in the week when Giants receiver Plaxico Burress answered a question by saying that he thought the Giants would win the game.

Quotations like that merge with fashion statements and become issues. When all the Giants players wore black clothing on the plane trip to Arizona, a few Patriots players wondered why they would dress as if they were attending a funeral.

Reuben Droughns, a Giants running back who was one of the few players not wearing his jersey Thursday, wore a brown designer shirt with a dragon’s head on it. He held his uniform in his hands.

“I better put this jersey on,” he said, before defending Burress.

“I agree with Plax,” Droughns said. “We’re not going to go out there and say we’re going to lose. We’re here to win.”

Said linebacker Kawika Mitchell, who was wearing a dark, hooded sweatshirt: “I’ve been wearing dark clothing all week. I’ll brighten up on Sunday. I’ll have my whites on.”

Among the Giants who were wearing their jerseys was Michael Strahan, the veteran defensive end who is a member of the team’s leadership council and one of its most frequently quoted players. He said the new editions of the T-shirt were collectors’ items because of the Super Bowl logo.

“Everybody has one,” he said of the players. “They were free, so I asked for three of them. Mine are in my locker.”

Ex-Giants Star Travels Long Road

Sages have said we must walk a mile in another person’s shoes before we can pass judgment. Unless the shoes belong to George Martin. Then you have to walk 1,600 miles.

Martin, a captain on the Giants 1986 Super Bowl championship team, is walking across the United States to call attention to the plight of rescue and recovery workers who risked their lives in the aftermath of the Sept. 11, 2001 attacks on the World Trade Center. Martin said that his walk, A Journey for 9/11, was created as “a labor of love and appreciation.”

Two of Martin’s neighbors died in the attacks.

“I’ve been called a hero,” he said Wednesday during a telephone interview from Oklahoma City. “But on that day, I saw what true heroes were really all about.”

Many of the first responders to the attack, including police officers, firefighters, and rescue and recovery workers were exposed to toxins that might have led to illness and disease that were undiagnosed at the time.

The money Martin raised will go to three participating hospital systems — the Mount Sinai Medical Center in Manhattan, the Hackensack University Medical Center in New Jersey and the North Shore-Long Island Jewish Health System — to provide medical care for the first responders and rescue and recovery workers. For every dollar Martin raises, the hospitals have pledged to provide an additional dollar of medical care.

The Giants’ surprising Super Bowl run has injected the walk with much-needed energy and news media coverage. Martin said that he had been bombarded with interview requests. “Every five minutes we’re being interviewed now, which is great because it brings exposure and brings our cause to the light,” he said.

Martin began his journey in September with a rousing halftime send-off during the Giants’ home opener. Since then, he has walked more than 1,600 miles.

Beyond the fund-raising impetus, what Martin has seen in the subsequent four and a half months has opened his eyes, and his heart, and renewed his faith in the human spirit. He has seen the Blue Ridge Mountains, the majesty of Virginia, the expansiveness of Tennessee, the diverse foliage of the fall, the tapestry of heartland agriculture.

iPhone Porn? Sure!

Good golly, no way no how! Ya' think? Porn on the iPhone? Well, of course there's going to be porn and sex and all kinds of sexy stuff available on it (such as porn) since the handheld allows for so much to run on its big screen, not to mention it uses a heck of a wireless Internet connection, too. The Mobile Adult Content Congress (in Miami Beach) is debating the issue as we speak.

So what's to stop providers in doing what they do best – provide, and in
this case, provide porn? Tons of porn for the geek who has a clever phone. Porn on the iPhone. It rhymes so well, it's good for a song. Actually you don't even need to be a geek to watch porn on your iPhone. Everyone has a peek every once in a while, they just don't admit it. That's why the web is full of it and that's why it's going to fill up the iPhone's screen pretty soon.

According to zdnet.com, this is what Gregory Piccionelli (a lawyer specializing in adult entertainment at law firm Piccionelli & Sarno) had to say about the matter: "It will be impossible to stop the adult business exploitation of mobile entertainment."

Heh! There. What did I tell you. The man says "impossible." Did we mention he's a lawyer? They know their stuff, and if Piccionelli & Sarno's man says there will be porn on iPhone, it's likely that there will be such content available on your Apple handheld.

Reuters’ Sinead Carew also reveals that Piccionelli's forecasts concern the offering of free porn to U.S. consumers on their mobile phones, just like adult dating services, or live video. Carew defines adult dates as "prearranged sex with strangers."

Reportedly, Piccionelli also said that Apple's iPhone is ideal for watching porn. Why? Because of the nifty visuals it's capable of reproducing, not to mention its Web browser "that mimics computer browsers," according to zdnet.com, while "most phones have stripped-down browsers."

I guess we don't even need to ask whether anyone thinks porn is on its way to the iPhone or not. A more appropriate question, however, would be: do you want porn on your iPhone?

9 Amazing Things About Llamas and Alpacas

1. Life in the Andes would be impossible without them. When a house is built on the Andes plateaus, people use to immure at its foundation a new born llama. For thousands of years, llamas have been used
for meat and burden transport, while its other domesticated relative, alpaca, delivered the finest wool for making blankets and ponchos (traditional mantles). A llama can transport up to 20 kg (44 pounds) of cargo.

2. Andean plateaus are of two types: wet paramos, between 3,800-4,600 m (12,600-15,300 ft) and dry punas, over 4,000 m (13,300 ft). Llama and alpacas thrive in the punas. A puna is characterized by low rainfall, extreme winds, powerful sunlight, rare and purified air. As an adaptation to these conditions, llamas and alpacas have dense and soft wool, thick skin, oval (not rounded) blood red cells.

3. Llamas and alpacas seem to have been domesticated in the area of the Lake Junin (Peru), around 2,500-1,750 BC.

4. Llamas were often sacrificed by Natives during their ceremonies, and even today the Indian fathers, with the occasion of the birth of a boy in their family, kill llamas or alpacas.

In the syncretic religion of the Andes, inside the churches, next to statues of the Catholic saints, you can see terracotta statues of llamas. During the Inca period, there were llama caravans made of 25,000 animals.

5. Llamas and alpacas are raised in conditions of semi-liberty. During the night, the animals are sheltered in open pens, surrounded by walls that keep some of the day's heat. Next morning, the animals go by themselves to graze and return to the pen at sunset. Through selection, people achieved alpacas with the hair long to the ground.

Cattle, horses or sheep could not adapt to puna conditions, with high temperature differences between day and night and poor food conditions.

6. Llama can have a hight of 1.3 m (4.3 ft), a length of 2 m (6.6 ft) and weight of 450 pounds (204 kg). Gestation lasts 11 months and the only offspring is raised for 15 months.

7. The Andean Indians use a system of knots made on the llama coat to transmit various messages and information.

8. One alpaca can deliver 3 kg (7 pounds) of wool at every two years. Alpaca is smaller than llama; it can be just 90 cm (3 ft) tall. 3 million individuals are found in Peru and about 50,000 in Bolivia, but attempts to colonize this animal, possessing the most expensive wool in the world, have failed so far in other areas.

9. Llamas and alpacas are closely related to camels. Like camels, they can spit as a method of establishing hierarchy, especially during the feeding time, as a way of disciplining lower-ranked individuals in the herd. Females also spit to chase away insistent males. The second type of spit is less smelly.

Blue Eyes: A Mutation Appeared 10,000 Years Ago!

Nature played with one of our ancestors, and it caused the blue eye color to appear; and now, women are in love with the blue eyes of Brad Pitt and men with those of Kristanna Loken. And that ancestor lived 6,000-10,000 years ago, as found by a research carried out at the University of Copenhagen.

"Originally, we all had brown eyes. But a genetic mutation affecting the OCA2 gene in our chromosomes resulted in the creation of a 'switch', which literally 'turned off' the ability to produce brown eyes ", said Professor Eiberg from the Department of Cellular and Molecular Medicine.

The OCA2 gene encodes the P protein, which controls the synthesis of
melanin, the pigment protein that gives the color of our hair, eyes and skin. The mutation is found in the gene adjacent to OCA2 that controls the activity of OCA2 and does not turn off completely the OCA2. It just decreases its action of spurring melanin synthesis in the iris, so that the low amount of melanin in the iris appears as blue, and not brown.

If the OCA2 gene had been silenced completely, the result would have been a total lack of melanin in hair, eyes or skin, a disease called albinism. In this case, the eyes would have been red, due to the blood vessels of the iris.

Eye color variation from brown to green is caused by the variable amount of iris melanin, but blue eyes are correlated with a very low level of variation in the melanin levels of the eyes, strictly linked to one genetic variation.

"From this we can conclude that all blue-eyed individuals are linked to the same ancestor. They have all inherited the same switch at exactly the same spot in their DNA," said Eiberg.

Oppositely, brown eyes can be the result of a large variation in the DNA sector controlling the melanin synthesis. The team investigated mitochondrial DNA (coming always from the maternal line) from blue-eyed individuals coming from countries far from one another, such as Jordan, Denmark and Turkey.

In 1996, the same team had detected that OCA2 was involved in the eye color. The mutation from brown eyes to blue eyes is another example of neuter mutation; like hair color or baldness, it does not impact the individual’s survival ability.

The First Dog Mummies Ever Found in Egypt!

In the heaven of the tomb raiders, an American-Russian team has managed to find 4 ancient tombs with well-preserved mummies, ornate painted coffins, and mummified dogs. The necropolis of Deir el-Banat is located in the oasis El Faiyum, 50 mi (80 km) southwest of Cairo, a place also famous for the discoveries of the oldest elephant fossils, some 50 million years old. Given the intensity of looting in the area, this was a surprise. The cemetery was used from the 4th century B.C. to the 7th century A.D.

"An important point is that these mummies are almost untouched. There are not so many [well preserved] mummies in El Faiyum at the moment," said lead researcher Galina A. Belova, a Russian Egyptologist.

In a separate tomb, the team found the first intact mummy ever encountered
in the necropolis. About 150 other tombs from different periods and a great number of poorly preserved mummies were also discovered, but most of the them had been plundered.
"Some of the newly discovered remains are the best yet found from the Ptolemaic era (the era of Greek domination that started soon after the conquest of Egypt by Alexander the Great in 332 B.C.). One mummy was beautifully gilded, and another is in very good condition," Zahi Hawass, Secretary General of Egypt's Supreme Council of Antiquities, told National Geographic News.

An odd burial contained the non-mummified remains of a child and several mummified dogs, unique in Egypt. The four best kept of the newly found tombs host almost intact human-shaped coffins.

"Some showed slight damage near the feet, probably the result of ancient robbers rummaging for riches," said the researchers.

The coffins were decorated with verses and images from the Egyptian Book of the Dead, crucial for the ancient Egyptians to pass from this world to the other. Three of them were wooden, while the fourth coffin, of a child, was made of papyrus, and was located on a different angle from the others.

"The shared burial may have belonged to a single family. It is uncommon to find coffins set at different orientations in this region," said the researchers.

Two coffins hosted mummies covered at the head and feet with vividly colored cartonnage. One mummy had a golden cartonnage mask, a symbol of eternity. One tomb also contained the only intact mummified woman that escaped from the tomb looters. As the tombs in this cemetery are less than a meter (3.3 ft) below the surface, they make easy targets for thieves.

The most interesting finding was the non-mummified body of a child having next to it mummified dogs. The child was naturally mummified by the dry climate, while the dogs were crudely mummified, and varied from puppies to adult dogs.

"They are put in any which way, with no real sense of orientation. Ancient Egyptians were known to keep domesticated pets and sometimes were buried with them. Other animals were included in burials as part of a religious ritual, but this find is unlike any that has been documented," said Salima Ikram, an animal mummy expert at the American University in Cairo.

Godiva Chocolate Room Up for Grabs

NEW YORK (Jan. 30) - Don't lick the walls.

An all-chocolate room was unveiled in Manhattan on Tuesday - a pre-Valentine's Day creation complete with furniture and artwork made of the sweet stuff.

"It's the perfect bit of sin," said Ali Larter, star of TV's "Heroes," of the Godiva chocolate "pearls" that are her private daily indulgence.

Here, they were dripping off the chandeliers above the dining table, which was a sea of stars, truffles and crescents - all chocolate, of course, under glass.

Larter is the celebrity face hired by the Belgian chocolatier for its annual Valentine's Day promotion contest. This year, anyone who buys the winning box of chocolates - for $23 and up - may win the chocolate room. It is to be re-created in a suite of Manhattan's Bryant Park Hotel for a pampered getaway weekend for two in May.

The winning box - sold only in North America - will contain a note informing the buyer of his or her good luck.

While no doubt a shameless commercial promotion - created by Los Angeles designer Larry Abel - the demo chocolate room set up on the sixth floor of an East Village building packed a tasteful, artsy punch.

Hanging in the "living room" was a painting built entirely of multicolored chocolate pieces inspired by Gustav Klimt's painting "The Kiss." Above the dining table was a "canvas" dripping with brown and white chocolate - a takeoff on Jackson Pollock's signature "drip" paintings.

And instead of words, books opened to a mound of chocolates.

You could actually sit on the plush sofa, which was chocolate-graced only on its sides, and the walls are made of chocolate.

There were a couple of "dont's" in the room: lighting the fireplace (with its chocolate logs and mantle) and the candles (all chocolate).

In addition, sinking into the easy chairs was discouraged - unless you wanted to rise with a chocolate-covered derriere.

Godiva is owned the Campbell Soup Co.

Starbucks to Cut Breakfast Sandwiches

SEATTLE (Jan. 31) - The scent of ham, eggs, cheese and bacon will soon stop competing with the aroma of coffee in Starbucks stores as hot breakfast sandwiches become the first casualty of the company's battle to win back customers.

The sandwiches, which will disappear by this fall, boost a typical store's annual revenue by $35,000, so pulling them off the menu will cost at first. Chairman and Chief Executive Howard Schultz said that proves the company isn't letting the soft economy distract it from committing to big changes that will pay off over the long haul.

"The decision and the courage it takes to remove something when there's pressure on the business - like the sandwiches - is emblematic that we're going to build for the long-term and get back to the roots and the core of our heritage, which is the leading roaster of specialty coffee in the world," Schultz told The Associated Press on Wednesday after the company released its financial results for the first fiscal quarter.

Starbucks Corp.'s profit rose by less than 2 percent, as U.S. customers grappling with a soft economy lined up in smaller numbers for a second quarter in a row.

Sales at stores open at least 13 months, a key measure of a retailer's health, fell 1 percent in the U.S. as traffic declined 3 percent - the second consecutive quarter. Stronger growth overseas helped boost global comparable-store sales a modest 1 percent, compared with 6 percent in first quarter 2007.

For the 13 weeks ended Dec. 30, Starbucks posted net earnings of $208.1 million, or 28 cents per share, up from $205 million, or 26 cents a share, during the same period a year ago.

Analysts polled by Thomson Financial were expecting a profit of 27 cents per share.

Revenue for the quarter was $2.77 billion, in line with analysts' estimate and up from $2.36 billion a year ago.

Starbucks shares fell 75 cents, or 3.8 percent, to close at $19.22 Wednesday, then fell another 28 cents in extended trading after the results were released. The company's stock is down about 50 percent since late 2006, when it was trading close to $40 a share.

Sharon Zackfia, an analyst with investment firm William Blair & Co., said the lackluster quarter came as no surprise. "I think an investor would have had to be living in a cave not to know that the December quarter was bad for the majority of retailers," she said.

As part of a broad push to revitalize its business, the company said it plans to open about 425 fewer domestic stores and 75 more overseas than previously planned, for a global total of 2,150 new stores. Starbucks has more than 15,700 worldwide.

Schultz said the slowdown in U.S. growth will allow the company to make better use of its time, money and staff and could reduce "cannibalization" - easing pressure some stores experience when a new one opens nearby.

Analysts have been eager for specifics on Schultz's turnaround plan for Starbucks, which has struggled with its own rapid growth, high dairy costs, declining traffic in U.S. stores and competition from cheaper rivals.

But Schultz said the company won't release details, including "five bold innovations," until its annual shareholders meeting in Seattle on March 19.

Starbucks has been testing $1 extra-small cups of drip coffee with free refills in some Seattle stores, which Schultz said it's doing to respond to the economic pressures many of its customers are facing. Some analysts say it could draw in new customers and drive up sales if they decide to upgrade to a $4 mocha or other high-margin espresso-based drinks.

By 2009, Starbucks said it aims to open more stores overseas than domestically for the first time - more than 1,000 stores in its international markets, where Schultz has said he sees enormous potential for growth, and fewer than 1,000 in the U.S.

The company said it expects low double-digit earnings-per-share growth this fiscal year because of the company's efforts to improve operations and "continued macroeconomic weakness."

That could drag earnings below the company's previous target of $1.02 to $1.08 per share. The company earned 87 cents a share last year, and it did not release an updated target for fiscal 2008.

IRS Warns of Tax Rebate Scams

WASHINGTON (Jan. 31) - Even before Congress passes an economic stimulus package, identity thieves are using promises of tax rebates to trick people into revealing financial and personal data, the Internal Revenue Service warned Wednesday.

Under one scheme, the IRS said, people are receiving phone calls telling them they can only receive a rebate if they provide bank account information for a direct deposit.

The tax agency stressed that it does not collect information by telephone and that no legislation has been enacted that would allow it to provide advance payments to taxpayers or that specifies the details of those payments.

The House last week, as part of an economic stimulus package, approved tax rebates of $600 and $1,200 respectively for most individuals and couples, with another $300 per child. The Senate is now considering a slightly different version.

The IRS also repeated past warnings of e-mails, supposedly coming from the agency, where people are asked to enter personal information on a form needed to obtain a tax refund.

A new scam, it said, involves an e-mail notification that a person's tax return will be audited with instructions to click on links to complete forms with personal and account information.

Businesses and accountants are also getting e-mails with instructions to download information on tax law changes. Clicking on these links could download "malware" onto the recipient's computer that gives the scammer remote access to the computer hard drive.

In another telephone scam, a caller claims to be an IRS employee who says the taxpayer has not cashed a refund check and asks the person to verify his or her bank account number.

On Tuesday, at a Senate Finance Committee confirmation hearing for Douglas Shulman, the nominee to be IRS commissioner, Sen. Charles Schumer, D-N.Y., expressed concern that taxpayers would be victimized by tax preparers and lenders who charge high interest rates for short-term advances on their stimulus rebates.

The IRS advised people not to click on any link from an e-mail purporting to come from the tax agency. People receiving questionable e-mails can contact the IRS through phishing@irs.gov.

Top al-Qaida Member Reportedly Killed

DUBAI (Jan. 31) - Abu Laith al-Libi, a top al-Qaida commander in Afghanistan who was blamed for bombing a base while Vice President Cheney was visiting last year, has been killed, according to a militant Web site.

Al-Libi was a key link between the Taliban and al-Qaida and was one of the Americans' 12 most-wanted men with a bounty of $200,000 on his head.

The Web site, which frequently carries announcements from militant groups, said al-Libi had been "martyred" but did not say where he was killed.

"We congratulate the Islamic nation for the martyrdom of the sheik, the lion, Abu Laith al-Libi," said a banner which appeared in a section of the Web site reserved for affiliated militant groups and not open to public posting.

Earlier, there had been reports of an attack on militants in a Pakistani village. Pakistani intelligence officials and local residents said a missile hit a compound about 2.5 miles outside Mir Ali in North Waziristan late Monday or early Tuesday, destroying the facility.

Residents said they were not allowed to approach the site of the blast and the Pakistan government and military said they did not know who fired the missile. Local officials said foreigners were targeted in the attack.

One intelligence official in the area, who spoke on condition of anonymity, said the bodies of those killed were badly mangled by the force of the explosion and it was difficult to identify them. The official estimated 12 people were killed, including Arabs, Turkemen from central Asia and local Taliban members.

Two top officials of Pakistan's Interior Ministry said they could not confirm al-Libi's death and were still trying to gather details on the missile strike. They spoke on condition of anonymity because of the sensitivity of the attack.

A knowledgeable Western official said that "it appears at this point that al-Libi has met his demise," but declined to talk about the circumstances. "It was a major success in taking one of the top terrorists in the world off the street," the official said. He added that the death occurred "within the last few days."

U.S.-led coalition and NATO-led force in Afghanistan could not confirm al-Libi's death. An official with the NATO-led force said they were picking up some signals from the Web, but could not confirm whether al-Libi was dead.

"There is no confirmation from our side," said a NATO official in Kabul on condition of anonymity because he was not authorized to speak publicly on the issue.

Pakistani counterterrorism officials say he was an al-Qaida spokesman and commander in eastern Afghanistan.

The U.S. says al-Libi — whose name means "the Libyan" in Arabic — was likely behind the February 2007 bombing at the U.S. base at Bagram in Afghanistan during a visit by Cheney. The attack killed 23 people but Cheney was deep inside the sprawling base and was not hurt.

The bombing added to the impression that Western forces and the shaky government of President Hamid Karzai are vulnerable to assault by Taliban and al-Qaida militants.

Al-Libi also led an al-Qaida training camp and appeared in a number of al-Qaida Internet videos.

Maj. Chris Belcher, a spokesman for the U.S.-led coalition in Afghanistan, said last year that al-Libi was a guerrilla fighter "knowledgeable about how to conduct suicide bombing missions and how to inflict the most civilian casualties." He had probably directed "one or more terror training camps," Belcher said.

Belcher said al-Libi had been the subject of "especially close focus" by U.S. intelligence since 2005, when U.S. forces destroyed a militant training camp believed set up by al-Libi in the eastern Afghan province of Khost. That was an admission that terror camps continued to operate on Afghan soil since the Taliban regime's ouster more than five years ago.

Belcher described al-Libi as "transient," moving where he thinks he can count on support.

"Terrorists like al-Libi use the rugged terrain of the Afghanistan-Pakistan border to conceal themselves while they plan violent insurgent activities. Our sources indicate that Abu Laith al-Libi favors tribal regions, including North Waziristan," Belcher said.

North Waziristan is a lawless enclave in neighboring Pakistan where last year the Pakistani government reached a peace deal with pro-Taliban militants. U.S. officials have since expressed concern that al-Qaida could be regrouping in Pakistan's border zone.

Mir Ali is the second largest town in North Waziristan and has a strong presence of foreign militants, mostly Uzbeks with links to al-Qaida who fled to Pakistan's tribal regions after the fall of the Taliban regime in Afghanistan in 2001.

A Pakistani intelligence official said that al-Libi had stayed until late 2003 in the North Waziristan village of Norak, about three miles outside Mir Ali, where he had several compounds. Norak is about nine miles from where the missile struck this week.

Al-Libi shifted inside Afghanistan after he took charge of al-Qaida operations on both sides of the border area, but retained links with Norak, the official said.

Obama says Clinton would be a step back

DENVER - Democratic Sen. Barack Obama said Wednesday a Hillary Rodham Clinton presidency would be a step back to the past, turning her husband's image of a bridge to the future against her. The former first lady decried the tenor of his comments in an interview with The Associated Press.

"I know it is tempting — after another presidency by a man named George Bush — to simply turn back the clock, and to build a bridge back to the 20th century," the Illinois senator said in Denver.

"... It's not enough to say you'll be ready from Day One — you have to be right from Day One," he added in unmistakable criticisms of Clinton, who often claims she's better prepared to govern, and her husband, who pledged during his own presidency to build a bridge to the 21st century.

Within hours, Hillary Clinton pushed back in an interview with the AP — and got in her own dig.

"That certainly sounds audacious, but not hopeful," said Clinton, in a play on the title of Obama's book, "The Audacity of Hope." "It's not hopeful and it's not what we should be talking about in this campaign," said Clinton, suggesting Obama was abandoning the core of his campaign.

"I would certainly, through you, hope we could get back to talking about the issues, drawing the contrasts that are based in fact that have a connection to the American people," Clinton said.

In his speech, Obama depicted Clinton as a calculating, poll-tested divisive figure who will only inspire greater partisan divisions as she sides with Republicans on issues such as trade, the role of lobbyists in politics and national security. At the same time, he elevated McCain, fresh off victory in Florida's crucial primary, as the likely Republican nominee.

In the AP interview, Clinton vowed to take the high road and warned that voters in the mega-primaries next week expect that.

"I'm going to continue to talk to people about what we need to do in our country to try to lift people up, to keep focused on the future to be very specific about what I want to do as president because I want to be held accountable," she said.

Obama drew more than 10,000 people for his speech at the University of Denver. They packed a hockey arena and crammed into two overflow rooms and still were lined up outside to get in. Colorado is a caucus state, one of 22 to hold nominating contests Tuesday, and is one of a handful of states where the Obama campaign is predicting victory. Clinton has the advantage in several others, while several are still up for grabs.

"Democrats will win in November and build a majority in Congress not by nominating a candidate who will unite the other party against us, but by choosing one who can unite this country around a movement for change," Obama said, speaking as rival John Edwards was pulling out of the race in New Orleans, leaving a Clinton-Obama fight for the Democratic nomination.

"It is time for new leadership that understands the way to win a debate with John McCain or any Republican who is nominated is not by nominating someone who agreed with him on voting for the war in Iraq or who agreed with him in voting to give George Bush the benefit of the doubt on Iran, who agrees with him in embracing the Bush-Cheney policy of not talking to leaders we don't like, who actually differed with him by arguing for exceptions for torture before changing positions when the politics of the moment changed," Obama said.

"We need to offer the American people a clear contrast on national security, and when I am the nominee of the Democratic Party, that is exactly what I will do," he said.

The two rivals fought hard prior to the South Carolina primary, but the tenor has eased a bit since then.

"I've been trying to keep this on a level where the contrasts and comparisons are certainly fair, this is an election after all," said Clinton. "I've been trying very hard to set the right tone, to be focused on bringing the party together, bringing the country together but around specific goals."

Clinton spent her day in Little Rock, Ark., before heading to Atlanta for speeches to the Southern Baptist Convention and a major Democratic fundraiser. She took a colorful diversion on the trip to Atlanta, heading down the aisle of her campaign plane serving peach cobbler to reporters and staffers.

"I love anything peach," Clinton said.

Obama said he understands voters might feel some comfort at the idea of returning to another President Clinton after eight years of Bush. But he cautioned voters not to buy the argument that Clinton's experience is what the country needs.

"It is about the past versus the future," he said. "And when I am the nominee, the Republicans won't be able to make this election about the past.

"If you choose change, you will have a nominee who doesn't just tell people what they want to hear," Obama told them. "Poll-tested positions, calculated answers might be how Washington confronts challenges, but it's not how you overcome those challenges; it's not how you inspire our nation to come together behind a common purpose, and it's not what America needs right now. You need a candidate who will tell you the truth."

Later Wednesday, Obama gave a 10-minute talk by live broadcast to a joint meeting in Atlanta of four historically black Baptist denominations, where Clinton appeared later. These groups produced some of the most prominent civil rights leaders, including the Rev. Martin Luther King Jr., whom Obama quoted.

"Pastors are pushing this movement forward," Obama said of his campaign, "and I need each and every one of you in this fight."

He asked the audience to imagine what it would mean for the country to see him with his hand on the Bible, taking the presidential oath of office.

"Our children will look at themselves differently and their possibilities differently. They'll look at each other differently," he said.

Clinton addressed the same group with a theme that aides described as a call for togetherness they contrasted with Obama's criticism. "Let us consider how we may spur one another to love and good deeds," Clinton said. She ended the day with a speech to a rowdy fundraising dinner.

"This has been a vigorous campaign," she said. "Whatever differences we have, they pale with the differences we have with Republicans."

Gov. Schwarzenegger to endorse McCain

SIMI VALLEY, Calif. - Gov. Arnold Schwarzenegger will endorse John McCain on Thursday, giving a boost to the Republican presidential front-runner six days before California's high-prize primary.

The two will appear at a news conference after touring a Los Angeles-based solar energy company and the governor will make his endorsement official, his senior aides confirmed.

Schwarzenegger's endorsement of McCain is yet another setback for Mitt Romney, the former Massachusetts governor who saw Florida slip from his grasp Tuesday after McCain rolled up the support of that state's two top elected Republicans, Gov. Charlie Crist and Sen. Mel Martinez.

His strategy in tatters, Romney plans to offer himself as the conservative alternative to McCain as he pushes ahead in hopes of winning enough delegates to topple the Arizona senator when 21 states vote in the Republican contest on Tuesday.

Schwarzenegger's move comes as McCain plows toward the nomination, the only Republican candidate to have won three hotly contested primaries — New Hampshire, South Carolina and Florida — since voting began earlier this month.

"Governor Schwarzenegger is an exceptional governor and we are honored that he has decided to endorse Senator McCain, and look forward to the event tomorrow," said Steve Schmidt, a senior McCain adviser who managed Schwarzenegger's 2006 campaign.

Schwarzenegger sat in the audience here Wednesday as McCain and Romney shared a debate stage with rivals Mike Huckabee and Ron Paul at the Ronald Reagan Presidential Library.

McCain, the four-term senator, is running strongly ahead of all three rivals in California, which offers a whopping 170 delegates to the Republican nominating convention. Candidates secure three delegates for each of the state's 53 congressional districts they win in the primary, in which only Republicans can vote.

The ultimate effect of Schwarzenegger's endorsement is unclear. The celebrity governor and former actor is universally known in the state, and his political network certainly will be helpful to McCain, who has virtually no organized effort in California after his candidacy nearly collapsed last summer. The actor-turned-governor also is a prolific fundraiser.

But Schwarzenegger has a strained relationship with some conservatives in his own party and McCain, himself, is fighting to convince GOP rank-and-file that he's committed to conservative values. Schwarzenegger's nod could exacerbate concerns about McCain among the party establishment.

Schwarzenegger also is taking heat from state Republicans who argue he's been too willing to bend to the wishes of the Democratic-controlled Legislature. At the same time, California faces a $14.5 billion budget deficit over the next year-and-half, and the governor has rankled the state's powerful education lobby with his proposal to cut spending by 10 percent from state agencies to deal with the financial crisis.

McCain and Schwarzenegger have been friends for years, and the two share a bond over their work on global warming issues as well as their similar independent streaks. Aides say Schwarzenegger long has respected McCain's push to eliminate wasteful spending in Washington, protect the environment and fix a broken immigration system.

The governor offered high praise of McCain throughout the campaign, calling him a "great senator" and "very good friend," and the two appeared together at the Port of Los Angeles last year. "We share common philosophy and goals for this country," McCain said at the time.

But Schwarzenegger always has stopped short of endorsing McCain, given that another friend, former New York Mayor Rudy Giuliani, also was in the race.

Earlier this month, Schwarzenegger told reporters he would not make an endorsement in the GOP primary, saying then: "It doesn't help me, and it doesn't help the state of California." But senior advisers say Giuliani's departure from the race Wednesday changed the dynamics of the decision for Schwarzenegger, and he decided to go ahead with the endorsement as it was clear that Giuliani's candidacy was over.

Astronomers Capture Images of Asteroid

Astronomers have obtained the first images of an asteroid on course to make its closest approach to Earth Tuesday, showing the space rock is lopsided.

The new images, taken with the Goldstone Solar System Radar Telescope in California's Mojave Desert, refine estimates of the asteroid's size. Named 2007 TU24, the asteroid was estimated to span up to 2,000 feet, but is now thought to have a diameter of about 800 feet.

Scientists at NASA's Near-Earth Object Program Office at the Jet Propulsion Laboratory in Pasadena, Calif., have determined that there is no possibility of an impact with Earth in the foreseeable future.

As the asteroid moved nearer to Earth, on Jan. 28, the Arecibo Observatory in Puerto Rico working with the Robert C. Byrd Green Bank Telescope in West Virginia produced another image of the asteroid. Astronomers used the Arecibo telescope, which is operated by Cornell University on behalf of the National Science Foundation, to bounce radar signals off the asteroid. The Green Bank Telescope received the echo signal and transmitted the data back to Arecibo to be transformed into an image.

Other radar telescopes were expected to point toward the asteroid as it made its closest approach to Earth, 334,000 miles, at 3:33 a.m. Eastern time Tuesday. For comparison, the moon is an average of 239,228 miles away.

At its nearest, the asteroid will reach an approximate apparent magnitude 10.3, or about 50 times fainter than an object visible to the naked eye in a clear, dark sky. Then, it will quickly get fainter as it moves away.

The combination of these telescopes will provide higher resolution images of the asteroid. Measurements from Arecibo's radar telescope will gauge the object's size more precisely, its speed and spin.

Like other asteroids, this one orbits the sun. Most do so in the asteroid belt between Mars and Jupiter. NASA pays particular attention to those whose orbits bring them so close to Earth.

TU24, discovered by NASA's Catalina Sky Survey on Oct. 11, 2007, is one of an estimated 7,000 near-Earth objects identified to date (another 7,000 are estimated to exist but are yet to be discovered).

"We have good images of a couple dozen objects like this, and for about one in 10, we see something we've never seen before," said Mike Nolan, head of radar astronomy at the Arecibo Observatory. "We really haven't sampled the population enough to know what's out there."

ProFire 2626, the New Recording Interface From M-Audio

Definitely, the guys at M-Audio love recording interfaces more than anything in this world. Far from being a bad thing, this love has led to the development of a new and very cool recording equipment codenamed ProFire 2626, suitable for both professional and home-studio use alike and offering multiple possibilities in terms of connectivity and versatility.

Since digital recording is more and more popular among music producers, sound engineers and musicians alike, it seems like the M-Audio ProFire 2626 is really well-targeted, especially as it comes with extensive features letting the user customize the recording specs and parameters. The first big things you'll notice about the M-Audio ProFire 2626 is the 26x26 simultaneous analog/digital I/O, a perfect feature for studio projects, letting you monitor and record a lot of instruments in the same time, giving you a better idea on what's actually happening.

This interface also comes with eight preamps running on the widely-acclaimed Octane technology; even cooler, the M-Audio ProFire 2626 can also run as a standalone 8-channel microphone preamp or an 8-channel A/D-D/A converter, allowing a 24-bit/192kHz operation. And as if this was not enough, the M-Audio ProFire 2626 sports the revered JetPLL jitter elimination technology whose use will make sure that your recordings have a pristine sound and perfect synchronization.

While compatible with the industry standard set by Pro Tools and therefor easy to integrate with any recording studio running on this DAW, the M-Audio ProFire 2626 sports an on-board DSP engine, routing routines and mixer which will let you customize your experience; additionally, the master volume control is user-assignable and it will provide you with unprecedented control over your mix. The volume knob can be set up to control up to four output pairs (for a 7.1 array), it can trim any of the channel pairs or headphone outputs and it can even be operated independently. Connectivity is ensured via FireWire, optical and analog channels.

The M-Audio ProFire 2626 will be shipping in Q1 2008 for a MSRP of $899.95. For more detailed specs, check out the product's page.

Updates and Task Manager Disabled by New Windows XP Worm

The Windows functions are always under attack because disabling a vital function of the operating system automatically means an open door for the hacker, who would be able to infiltrate into the computer and conduct his malicious activities. Today, a new worm has been spotted in the wild and, according to security company Trend Micro, it affects most flavors of the operating system produced by Microsoft, including Windows 98, ME, NT, 2000, XP and Server 2003.

But what's worse is that WORM_SILLYFDC.CY has a high damage potential
and a high distribution potential, two elements that underline the worm's capability to reach your computer and harm the data stored on it. In case you're curios about how can you get infected, the process is pretty simple: all you need to do is to visit an infected page. However, the worm may also be dropped by another piece of malware, Trend Micro explains.

The main targets of the worm are two important Windows functions: the Automatic Windows Update and the Task Manager. Both features of the operating system are disabled, so the users would not be able to update their Windows version or to check the running processes in order to shut down the infection.

Just like many other recent worms, WORM_SILLYFDC.CY spreads itself through the clean removable drives connected to the computer. Every time a removable drive is plugged into the system, the worm copies an Autorun.inf file to execute itself once the device is connect to another PC.

In addition, "it infects files of certain types. It does this by adding an iFrame tag that contains a link to a malicious site. As of this writing, the iFrame tag may contain a malicious URL," Trend Micro explains.

As you know, an up-to-date antivirus is almost a must-have, so hurry up and apply the latest virus definitions in order to keep your computer secure. Also, you should avoid visiting malicious websites that may attempt to drop the worm on your computer.

Amazon’s Profit More Than Doubles

For Amazon.com, the fourth quarter was even sweeter than usual. But Wall Street reacted negatively because profit margins slid slightly.

On Wednesday the company announced that fourth-quarter profit more than doubled to $207 million, or 48 cents a share, from $98 million, or 23 cents a share in the fourth quarter last year. It reported sales of $5.67 billion, up 42 percent from $3.99 billion in the quarter last year.

The fourth quarter, which includes the critical holiday shopping season, is reliably the company’s strongest period, and this year proved no different.

“This quarter showed accelerated sales growth and record operating profits,” Jeff Bezos, the chief executive, said in a statement released with the earnings. “In our view, these unusual financial results are driven by one thing: continuously improving the customer experience.”

Analysts had forecast earnings of 48 cents a share on revenue of $5.37 billion for the quarter, according to current estimates from Thomson Financial.

Despite the robust report, Amazon shares were down 11 percent in after-hours trading. Analysts pointed to weaker profit margins. Amazon’s gross margin fell in the fourth quarter to 20.6 percent from 21.3 percent, a year earlier, as the company continued to invest in new technology.

Before the company announced its financial results, shares of Amazon rose 26 cents to $74.21.

Amid fears of a slowdown in consumer spending causing jitters on Wall Street, Amazon forecast sales in the current quarter of between $3.95 billion and $4.15 billion, an increase of between 31 percent and 38 percent from first quarter 2007.

It said operating income is expected to grow as much as 38 percent in the first quarter.

Sales for the entire are forecast to grow between 26 percent and 33 percent over 2007, the company said.

Amazon.com’s stock price has been on a wild ride this past year, reaching just over $100 a share in October, dropping into the $70 range in November, only to start the year at $96.25.

During the fall, Amazon introduced an electronic book device called the Kindle and an online store where customers can download e-books. Analysts had not expected that product to have a significant effect on the fourth quarter.

Last year, the company also introduced the Amazon MP3 digital music store to sell downloaded music, including tracks from EMI and Universal, making it a significant competitor to Apple’s iTunes.

Fed cuts as growth stalls

WASHINGTON — Armed with new evidence indicating economic growth virtually stalled late last year, the Federal Reserve on Wednesday announced another half-point cut to its benchmark lending rate in a bid to prevent a recession.

The Fed reduced its federal-funds rate — the overnight rate banks charge each other — to 3 percent. Commercial banks mirrored that move, lowering their prime rate — which they charge their best borrowers — to 6 percent.

The Fed also made a half-point cut to the rate it charges banks for emergency borrowing.

When the Fed began cutting in September, its benchmark rate was 5.25 percent and the prime rate was 8.25 percent.

Lower rates make it cheaper to take out a car loan, pay off credit-card debt or buy inventory for a small business. But turbulent credit markets and a deep slump in the housing sector may mute some of the benefits of the rate cuts, whose effects in any case won't be felt across the broader economy for months.

Banks and other lenders have become reluctant to work with anyone but borrowers with impeccable credit histories.

The Fed alluded to this Wednesday.

"Financial markets remain under considerable stress, and credit has tightened further for some businesses and households," it said. "Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets."

The Fed's statement left open the possibility of more rate cuts in the months ahead.

"Today's policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity. However, downside risks to growth remain," it said.

Economic-growth data released Wednesday by the Commerce Department underscored how much housing is hurting the broader economy.

Investment in residential housing fell by the largest quarterly amount since 1981, and that's off-setting the Fed's efforts to jump-start the economy.

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"The principal link between monetary policy and the economy is the housing market, and this link is being short-circuited by the housing recession," said Mark Zandi, the chief economist for Moody's Economy.com, a forecaster in West Chester, Pa.

The latest Fed cuts came on the heels of an unusual emergency three-quarters-of-a-point reduction in the federal funds rate Jan. 22. Faced with deep drops in stock markets across the globe and anticipation of similar slides in the United States, Chairman Ben Bernanke took dramatic action.

The reasons for his concern became clear Wednesday morning, when the Commerce Department data showed economic growth in the fourth quarter of 2007, as measured by the gross domestic product, slowed to 0.6 percent.

That's about half of what most mainstream economists had forecast and the slowest rate in five years. It suggests the economy had virtually no tail wind going into what's been a volatile new year so far.

The full-year growth rate for 2007 was 2.2 percent, compared with 2.9 percent in 2006.

President Bush and Congress are rushing to put together a stimulus plan, hoping the combination of tax rebates for consumers and tax breaks for businesses will spur consumer spending, which drives two-thirds of U.S. economic activity.

The $150 billion stimulus measure passed the House on Tuesday.

But the Senate began modifying it Wednesday to provide economic assistance to the poor and elderly, possibly putting the two chambers at odds and raising the prospects of a presidential veto and delay.

Wednesday's economic data underscored why quick passage of a stimulus plan is so important.

The new data confirm consumer spending is slowing and that consumers have less money left after meeting their basic needs.

Consumer spending rose 2 percent in the fourth quarter, down from 2.8 percent in the third quarter. It contributed 1.37 percentage points to economic growth in the fourth quarter, down from 2.01 percentage points in the third quarter.

Real disposable personal income grew 0.3 percent, well off the 4.5 percent increase of the previous quarter.

The troubled housing sector negated almost all gains from consumer spending.

Investment in residential housing fell 24 percent from October through December, shaving an estimated 1.18 percentage points off the economic growth rate.

In previous quarters, growing U.S. exports had off-set the negatives from housing. But in the fourth quarter, exports contributed less than half a point to the economic growth rate.

The biggest surprise in Wednesday's important data was that business inventories fell during the last three months of last year.

In the past, such a drop was a sure sign of recession.

But inventory management has grown more precise in recent years, and the drop in inventories could signal companies are well-positioned to operate in a slower economy.

"The inventory drawdown was nearly all in vehicle inventories. The auto manufacturers won't be building [more of] them anytime soon," Zandi said.

"Inventories elsewhere aren't overladen but not lean either," he said. "Inventory changes are unlikely to play a role in determining overall growth during the first half of the year."

Whether the economy grows slowly or gets mired in recession depends on how businesses spend and hire.

December's weak employment numbers led many economists to increase the chance of recession, and the eyes of Wall Street and Main Street now turn to the Labor Department's release of January employment data Friday.

Edwards to quit presidential race

DENVER - Democrat John Edwards is exiting the presidential race Wednesday, ending a scrappy underdog bid in which he steered his rivals toward progressive ideals while grappling with family hardship that roused voters' sympathies, The Associated Press has learned.

The two-time White House candidate notified a close circle of senior advisers that he planned to make the announcement at a 1 p.m. EST event in New Orleans that had been billed as a speech on poverty, according to two aides. The decision came after Edwards lost the four states to hold nominating contests so far to rivals who stole the spotlight from the beginning — Hillary Rodham Clinton and Barack Obama.

The former North Carolina senator will not immediately endorse either candidate in what is now a two-person race for the Democratic nomination, said one adviser, who spoke on condition of anonymity in advance of the announcement. Clinton said Wednesday that Edwards called her to inform her about his decision.

Obama told reporters Edwards had exited the race in a "classy" way. "I think he's run a great campaign," said Obama, who aides said also spoke with Edwards Tuesday night and asked for his endorsement.

In a statement from his campaign, Obama said Edwards "spent a lifetime fighting to give voice to the voiceless and hope to the struggling, even when it wasn't popular to do or covered in the news."

"While his campaign may end today, the cause of their lives endures for all of us who still believe that we can achieve that dream of one America," the statement said.

Four in 10 Edwards supporters said their second choice in the race is Clinton, while a quarter prefer Obama, according to an Associated Press-Yahoo poll conducted late this month. Both Clinton and Obama would welcome Edwards' backing and the support of the 56 delegates he had collected, most of whom will be free to support either Obama or Clinton, though some will probably look for guidance from Edwards.

An immediate impact of Edwards' withdrawal will be six additional delegates for Obama, giving him a total of 187, and four more for Clinton, giving her 253. A total of 2,025 delegates are needed to secure the Democratic nomination.

Edwards won 26 delegates in the Iowa, New Hampshire and South Carolina contests. Under party rules, 10 of those delegates will be automatically dispersed among Obama and Clinton, based on their vote totals in those respective contests. The remaining 16 remain pledged to Edwards, meaning his campaign will have a say in naming them.

Three superdelegates — mainly party and elected officials who automatically attend the convention and can support whomever they choose — had already switched from Edwards to Obama before news of Edwards' withdrawal from the race.

Edwards waged a spirited top-tier campaign against the two better-funded rivals, even as he dealt with the stunning blow of his wife's recurring cancer diagnosis. In a dramatic news conference last March, the couple announced that the breast cancer that she thought she had beaten had returned, but they would continue the campaign.

Their decision sparked a debate about family duty and public service. But Elizabeth Edwards remained a forceful advocate for her husband, and she was often surrounded at campaign events by well-wishers and emotional survivors cheering her on.

Edwards planned to announce his campaign was ending with his wife and three children at his side. Then he planned to work with Habitat for Humanity at the volunteer-fueled rebuilding project Musicians' Village, the adviser said.

With that, Edwards' campaign will end the way it began 13 months ago — with the candidate pitching in to rebuild lives in a city still ravaged by Hurricane Katrina. Edwards embraced New Orleans as a glaring symbol of what he described as a Washington that didn't hear the cries of the downtrodden.

Edwards burst out of the starting gate with a flurry of progressive policy ideas — he was the first to offer a plan for universal health care, the first to call on Congress to pull funding for the war, and he led the charge that lobbyists have too much power in Washington and need to be reigned in.

The ideas were all bold and new for Edwards personally as well, making him a different candidate than the moderate Southerner who ran in 2004 while still in his first Senate term. But the themes were eventually adopted by other Democratic presidential candidates — and even a Republican, Mitt Romney, echoed the call for an end to special interest politics in Washington.

Edwards' rise to prominence in politics came amid just one term representing North Carolina in the Senate after a career as a trial attorney that made him millions. He was on Al Gore's short list for vice president in 2000 after serving just two years in office. He ran for president in 2004, and after he lost to John Kerry, the nominee picked him as a running mate.

Elizabeth Edwards first discovered a lump in her breast in the final days of that losing campaign. Her battle against the disease caused her husband to open up about another tragedy in their lives — the death of their teenage son Wade in a 1996 car accident. The candidate barely spoke of Wade during his 2004 campaign, but he offered his son's death to answer questions about how he could persevere when his wife could die.

Edwards made poverty the signature issue of both his presidential campaigns, and he led a four-day tour to highlight the issue in July. The tour was the first to focus on the plight of the poor since Robert F. Kennedy's trip 40 years earlier.

But even as Obama and Clinton collected astonishing amounts of money that dwarfed his fundraising effort, Edwards maintained a loyal following in the first voting state of Iowa that made him a serious contender. He came in second to Obama in Iowa, an impressive feat of relegating Clinton to third place, before coming in third in the following three contests.

The loss in South Carolina was especially hard because it was where he was born and he had won the state in 2004.

At Edwards headquarters in Chapel Hill, N.C., two staffers debated on how best to answer the phones, saying "John Edwards for president" no longer seemed appropriate.

EBay sellers not happy about fee changes

SAN FRANCISCO - Vendors who sell their goods on eBay are scratching their heads after the company unveiled a new fee structure in effort to boost listings and maintain its share of the online auction market it helped start a decade ago.

While eBay Inc. says more than 60 percent of its sellers will save money with the new plan, several sellers have crunched their numbers and consider the rejigging a fee hike.

"We call it eBay math, it's a different math than most other people's math," said Randy Smythe, who used to sell music and movies on eBay from Southern California.

Under the old rules, for example, selling a purse at auction for $25 would have cost the seller $1.91, including 60 cents for listing the item plus eBay's commission of $1.31. Under the new structure, the seller would pay $2.74, including 55 cents to list the item plus a higher commission of $2.19.

Carol Hearn, who sells antiques on eBay from Washington state, said the fees are modest compared with the cost of selling items in person.

"It looks like what they are trying to do with the fees is make it more difficult and expensive to sell low-end items. The people that are selling low-end items are going to feel this fee increase the most," Hearn said.

EBay's commissions will rise on items auctioned for less than $1,000 or sold at fixed prices lower than $100, while eBay's cut on more expensive auction items will remain 1.5 percent. It will take less off the top of higher-end fixed-price sales — 2 percent or 4 percent, rather than 3 percent or 5 percent.

One of its main rivals in fixed-price sales, Amazon.com Inc., charges no fee at all to list an item, though it charges a commission as high as 15 percent.

EBay said the changes were designed to boost listings, which have stagnated in recent years. The company is accustomed to a "vocal" and "passionate" seller community, company spokesman Usher Lieberman said.

Martin Pyykkonen, an analyst with Global Crown Capital, said eBay's rising fees have in the past caused sellers to look elsewhere for places to practice the online skills they perfected at eBay, whether it's their own Web sites, Amazon, or other shopping sites.

"The more savvy sellers look at a multitude of options," Pyykkonen said. "It's not like Amazon is taking market share from eBay in a big chunk, it's more of a gradual shift.

"This commission going up will be a telling point over the next months to see what kind of reactions it gets," he said.

Lieberman said the company's internal pricing experiments and number-crunching show listings overall will rise in response to the changes, which come as longtime Chief Executive Meg Whitman announced she would retire at the end of March.

EBay most wants to encourage growth in fixed-price sales, the area where it sees the most potential for growth.

"It's too little too late," said Steve Grossberg, one of eBay's top 100 sellers and the founder and president of the Internet Merchants Association.

Grossberg, a Florida-based vendor of video games, spoke by phone from a conference of 200 of North America's top eBay sellers in Washington, D.C., where incoming CEO John Donahoe announced the fee changes Tuesday. EBay makes 80 percent of its revenue from the top 20 percent of its sellers.

"I think you are going to see a listing decrease, you are going to see some sellers leave the site or pull back quite a bit and think of other ways to make revenue, and it's going to backfire," Grossberg said.

Listings on eBay's various sites rose 4 percent in the fourth quarter, reversing two straight quarters of declines, the company reported last week. The number of people actively using the site has stagnated, rising just 2 percent from a year ago, while revenues have risen modestly.

"EBay does sincerely want to compete. They are reacting to the competitive threat of Amazon," said Ina Steiner, editor of AuctionBytes.com, a trade publication for online sellers.

Amazon already has "cherry-picked" a lot of eBay's high-volume sellers, Steiner said.

EBay shares fell 75 cents, or 2.8 percent, to $26.12 Tuesday.

Ditching Vista: How To Downgrade To Windows XP

Software incompatibilities. Sluggish operation. That darn User Account Control screen. Is it any wonder Windows Vista has being greeted in some quarters with a lack of enthusiasm? But your PC came with Vista, and that means you’re stuck with it, right?

Wrong. You can replace stiff, awkward Vista with the comfy, compatible old slipper that is Windows XP. It takes a couple of hours, but it won’t cost you any money that you haven’t already spent. Here’s how.

Start by backing up your system. At the very least, offload the data to CDs or, better yet, a USB flash drive or external hard drive. Even better: Take an image of the entire hard drive using a utility like Acronis TrueImage or Norton Ghost, for a complete system restoration. If the XP installation goes badly, having a backup or disk image allows you to restore your system to its previous state. You’ll still be running Vista, but at least you’ll still be running.

Next, gather up all the drivers you'll need. Remember that your PC was built to Vista specifications and equipped with Vista-compatible software and drivers. Your PC doesn’t have XP drivers, and Windows XP might not have all the drivers built into it that your PC needs. Unless you collect all the right drivers before you do your upgrade, you run the risk of ending up with a crippled PC.

To avoid this dilemma, poke around Windows Device Manager to see exactly what components are installed, then head to your PC maker's Web site and download the appropriate drivers. Essentials include video, audio, Ethernet, and wireless networking (Bluetooth and/or Wi-Fi). Save everything to the USB drive so the drivers and other software and information are easily accessible when you need them.

Round up the software CDs for connected peripherals like printers, PDAs, and iPods.

Make sure you have a Windows XP Pro CD and a valid activation key. If you don’t have a CD available, you can beg or borrow one from a friend or co-worker.

You can get the activation key from Microsoft. All volume-licensed versions of Vista, along with retail and OEM versions of Vista Business and Vista Ultimate, come with downgrade rights. That means you're entitled to an XP activation key from Microsoft or your PC maker. (Interestingly, you can downgrade even further if you wish: The license also entitles you to Windows 2000 Professional, Windows NT 4.0, Windows 98, or even Windows 95.)

Finally, make a list of applications and utilities you'll want to install (or reinstall) after you've downgraded.

Downgrade Or Sidegrade?

Now you have to decide if you want to downgrade or “sidegrade.” “”Downgrading” is what Microsoft calls it when you revert from a newer OS to an older one.

“Sidegrading” is a less radical option. Instead of ditching Vista altogether, you can install XP alongside it, booting to either operating system as the need arises. That way, you get to run XP for everyday operations, while still poking around in Vista and getting acquainted with it more gradually.

So, let's dive into actually doing a downgrade. (If you want to sidegrade, see the sidebar on the third page of this article). As I mentioned earlier, you should have a good backup in place along with all the necessary drivers and software for your system.

Installing XP On The Side

For the best of both OS worlds, consider setting up a dual-boot configuration: Vista stays put, XP and joins it on a newly created drive partition. Each time you boot your PC, you'll choose the OS you want from an options menu. It's easy to set up, and it requires only a few extra minutes on top of the standard XP-install process. Here's how:

1. Click “Start” and type “computer.” Select “Computer Management” from the list that appears.
2. In the left pane, click “Disk Management.” In the center pane, right-click your C: drive and choose “Shrink Volume.”
3. When prompted to do so, enter the amount of space you want to allocate for the new partition; the one that’s about to receive XP. I recommend giving XP at least 10 Gbytes (meaning you'd type the number 10,000 into the size field), though obviously you may want to allocate a lot more space to accommodate programs and data.
4. Now look for a box labeled “X gigabytes unallocated,” where X is the amount of space you entered in step 3. Right-click the box and choose New Simple Volume. Follow the wizard as it walks you through the remaining steps.
5. Exit the Computer Management utility and reboot your PC, this time with your XP CD in the drive. From here you can follow the installation steps outlined in the main section, but make sure to select the new partition, not the C: drive.
6. Once you've installed XP, you'll need to run a free utility (VistaBootPRO) to configure a boot menu for your system. You can find a more comprehensive tutorial (and the utility itself) on the VistaBootPRO site

When you're all done, you'll still need to activate XP using the information provided in the main section.

Boot your Windows XP Pro CD. Most new PCs are set up to let you boot from CD by default, but if yours isn’t one of those, you’ll have to venture into your manufacturer’s documentation or search Google to find out how to tweak the BIOS settings to allow you to boot from CD.

When the first XP Setup menu appears, press Enter. Press F8 to accept the license agreement, then select your C: drive as the desired partition and hit Enter.

Note that if you get an error message indicating Windows was unable to detect any hard drives on your system, it's because XP lacks the necessary drivers for newer SATA hardware. Unfortunately, there's no easy workaround. Although your PC vendor should have the drivers you need, you may have to attach a floppy drive to load them during XP installation. You boot from the XP CD, hit F6 when prompted, and hope the system is able to pull the drivers off the attached floppy drive. This can be a hit-or-miss affair. If you run into trouble, hit Google — or sweet-talk your local PC guru —for additional help.

Now choose the option labeled “Format the partition using the NTFS file system (Quick).” On the final screen, press F to format the drive. This is the do-or-die moment; you’re completely erasing your PC’s hard disk. No turning back!

From this point you can follow the remaining prompts to install XP in regular fashion. The entire process will take around an hour to complete.

When the OS installation completes, install whatever drivers are needed so you can get on your local network and the Internet (those are the drivers you saved to your USB drive before the upgrade), adjust the video settings, install your favorite applications, restore your data from the USB drive, and otherwise customize Windows to your liking.

There's no sense activating Windows until you know for sure that everything works like it should. Activation would just be a waste of time if you end up having to roll back to Vista or re-install XP again. XP gives you 30 days to use Windows and tinker before activation is actually required (though it'll nag you on a regular basis until you comply).

Once you're satisfied that XP is in the groove, you're free and clear to activate. Make sure to select the "activate by phone" option; this isn't something you can do online. Dial the number provided, wade through the prompts until you reach a live rep, then explain that you're downgrading. Provide your Vista product key; the rep should walk you through the remaining steps. Note that you may be redirected to your PC vendor, depending on your Vista version and license.

That's it! Now you can install your software, restore your data, and do whatever else it takes to make the system your own. Welcome back, XP — you were missed.

Yahoo's woes vex employees, shareholders

SAN FRANCISCO - It's not a pleasant time to be a Yahoo Inc. employee or shareholder.

Hoping to snap out of a financial malaise, Yahoo is preparing to lay off as many as 1,000 workers in the Sunnyvale-based company's biggest purge since it was scrambling to survive the dot-com bust seven years ago.

Cost-cutting like that normally makes investors happy, but Wall Street wasn't in a celebratory mood late Tuesday after Yahoo reported a 23 percent drop in its fourth-quarter profit and provided a tepid outlook for 2008.

The one-two punch pounded Yahoo's already sagging shares, hurling the stock 9.4 percent lower when trading opened Wednesday. Shares fell $1.96 to $18.85. The backlash extends a decline that has obliterated $35 billion in shareholder wealth since the end of 2005, slashing Yahoo's market value by more than 50 percent.

Unless Yahoo can bounce back soon, the company could face more pressure to find a buyer or make another dramatic move like hiring rival Google Inc. to run its search engine and generate more ad revenue.

Microsoft Corp. has been mentioned as Yahoo's most likely suitor, although more analysts are starting to question whether Yahoo's deepening funk will scare off potential bidders.

Jerry Yang, a Yahoo co-founder who became chief executive seven months ago in an attempt to shake things up, remains confident better times are ahead as the company realizes the gains from recent acquisitions and ad partnerships.

But he indicated the big payoff is unlikely to come before 2009, warning in a prepared statement that Yahoo still faces "headwinds" this year.

"This sort of transition takes time," Yang said in a conference call with analysts Tuesday. "But we have the talent and the strong cash flow it takes to succeed."

Investors, though, appear to be growing weary of waiting for a turnaround that has been promised for the past 18 months. Yahoo shares dropped $2.09 in extended trading Tuesday after finishing the regular session at $20.81, up 3 cents.

"I'm surprised by how slowly they seem to be moving," said Cantor Fitzgerald analyst Derek Brown. "Yahoo still has quite a bit of work ahead."

In its most drastic step since Yang became CEO, Yahoo is drawing up plans to whittle as many as 1,000 jobs from its payroll — a 7 percent reduction of its 14,300-employee work force.

Yahoo indicated some employees whose current jobs are eliminated may be offered new assignments in other parts of the company. Further details are supposed to be released by mid-February.

Yahoo expects to absorb a first-quarter charge of $20 million to $25 million to pay for severance costs and other expenses incurred in the layoffs.

The cost cutting could reduce Yahoo's annual expenses by more than $100 million, helping offset some lost revenue from a re-negotiated partnership with AT&T Inc. to provide high-speed Internet service.

Under a new deal announced Tuesday, Yahoo and AT&T will share revenue generated through online advertising. Previously, AT&T had paid Yahoo a portion of the fees collected from subscribers to their cobranded Internet service. Analysts had estimated that arrangement generated about $250 million in annual revenue for Yahoo.

To ease the pain of the transition, Yahoo will receive an upfront payment of $300 million to $400 million from AT&T.

Yahoo's profits have been falling even though advertisers are spending more than ever on the Internet.

The bulk of the additional online ad spending has been pouring into Internet search leader Google, which was smaller than Yahoo just three years ago and is scheduled to release its fourth-quarter results Thursday.

Yahoo earned $205.7 million, or 15 cents per share, during 2007's final three months, down from net income of $268.7 million, or 19 cents per share, at the same time in 2006.

Reflecting the gloomy aura hanging over Yahoo, analysts surveyed by Thomson Financial had projected earnings of 11 cents per share, on average.

For the full year, Yahoo's profit decreased 12 percent to $660 million.

Fourth-quarter revenue totaled $1.83 billion, an improvement of 8 percent over $1.7 billion a year earlier. After subtracting commissions paid to its advertising partners, Yahoo's revenue was $1.4 billion, in line with analyst estimates.

Yahoo estimated its revenue this year will range from $5.35 billion to $5.95 billion, excluding ad commissions. The average analyst estimate stood at $5.92 billion.

Separately, Yahoo announced it hired former VeriSign Inc. executive Aristotle "Ari" Balogh as its new chief technology officer, filling a void created with the resignation of Farzad Nazem last June. Balogh, 43, held the same job at VeriSign.