Not only did Windows Vista - billed by Microsoft as its biggest operating system for 10 years - fail to distinguish Microsoft's latest fiscal year from previous, non-Windows-Vista years, but Microsoft also missed its own expectations by several million dollars.

Is Windows Vista the biggest PR failure in Microsoft's history?

Forty-four percent of businesses would consider moving to an operating system other than Microsoft Windows in order to avoid moving to Vista, according to systems appliance management firm Kace. The reluctance to step into Redmond's latest OS could prove to be a boon for competitors like Linux and Apple, not to mention makers of virtualization applications.

In a blow to Microsoft Corp., a federal judge granted class-action status to a lawsuit late Friday alleging that Microsoft unjustly enriched itself by promoting PCs as "Windows Vista Capable" even when they could only run a bare-bones version of the operating system, called "Vista Home Basic."

A federal judge has said consumers may go ahead with a class-action lawsuit against Microsoft over the way it advertised computers loaded with Windows XP as capable of running the Vista operating system.

The lawsuit said Microsoft's labeling of some PCs as "Windows Vista Capable" was misleading because many of those computers were not powerful enough to run all of Vista's features, including the much-touted "Aero" user interface.

Nine months since its release, lots of hardware and software products still don't work with Microsoft's operating system, including some that are certified as Vista compatible.

I knew it. Vista simply wasn’t ready for prime time. Some internal documents that emerged from a class-action lawsuit over Vista Capable illustrated that hardware vendor, Dell, pushed back on Microsoft to fix issues with Vista before launching. Microsoft knew fully well of Dell’s feedback as early as Aug 2005.

Technically, Vista is pure misery. It eats system resources like an elephant does peanuts, Windows applications break and its so-called improved security is a joke. I know it. You know it. Even Microsoft's most devoted yes-men know it--although they won't admit it--and perhaps Microsoft knows it as well.

Operating system security is always a hotly contended subject, and last week Microsoft amped up the hype by claiming that Windows Vista and the soon-to-be-released 7 is the world’s most secure OS, beating both Linux and Mac OS X.

Here’s what Microsoft’s chief operating officer Kevin Turner had to say at the MidMarket CIO Summit last week: