With Vista’s high system requirements the desktop wars erupt in earnest. Windows XP remains strong in business as most don’t see the need to spend money to switch to Vista. Microsoft releases Service Pack 3 to deal with holes, bugs and other issues. OLPC, Ubunto and other distros gain traction.

Secret surprise features in OS X drive Mac sales to a crazy frenzy.

PreN becomes WirelessN. Mesh networks spring up in San Francisco and New York City causing cellphone/phone/network companies to whine about lost revenue. MPAA/RIAA freaks more as packets are nearly untraceable.

iPods break the 100 million mark midway through the year.

Dell announces it is discontinuing CRT sales.

BlueRay/HD-DVD combo drive ships.

Podcasting threatens big broadcasting despite big broadcasting taking part in podcasting.

Bittorrent takes measurable a bite out of realtime television.