“The Daily story is based on inaccurate rumors and speculation,” Microsoft spokesman Frank Shaw told AllThingsD. “We have no further comment.”

Not the most hardcore of denials. Certainly, it doesn’t explicity debunk the idea that Microsoft might be developing a version of its popular office suite for the iPad. But it does punch a sizable hole in The Daily’s report.

But what of that photo accompanying The Daily’s story, the one that seems to show a touch-based version of Office running on an iPad? Sources close to Microsoft say it’s “not legit.” ZDNet’s Mary Jo Foley is hearing similar things from her sources.

The Daily, for its part, is standing firm, as evidenced by Editor Peter Ha’s tweeted response to such talk:

(Image courtesy of The Daily)

Foley has found a Microsoft job posting that mentions the project, and notes its reference to “services and experiences revolving around music\video discovery and consumption”.

That nugget is enough for some observers to conclude that Microsoft is going after Pandora, the Web radio service, because Pandora’s service also fits that description.

Here’s the thing, though: Basically all Web media services now focus on “discovery and consumption” — that is, helping people find stuff they didn’t know they were looking for, and helping them buy/play it.

The one big exception is Apple’s iTunes store, which is primarily a place to go buy things you know you want. The fact that iTunes dominates the digital media market (particularly in music) is one of the reasons other services have focused on “discovery and consumption” — it’s a way to differentiate yourself against the market leader.

And for all we know, Ventura could feature an iTunes-style store, too. But based on Foley’s reporting, it’s likely to feature more than that, as well — just like every media service on the Web.

Lee’s departure was first reported by ZDNet’s Mary Jo Foley, who discovered the update on Lee’s Web page, where his title is listed as “Rapid Evaluator” for Google.

In a Jan. 18 blog post, Lee had very little to say about his new position, and spent most of his time praising his former babies, the Xbox and Kinect: “I look forward to seeing all the creative and unexpected ways that game developers will use the data from the camera to create fun experiences. The Xbox is exceptionally well positioned to do great things in the entertainment space.”

Microsoft’s Xbox has been selling well, compared to the other consoles in the space, led by eight million Kinects that flew off store shelves during the holidays.

If his past record is any indication, there’s no telling what Lee will do next. Among the projects he’s dabbled in, he lists: The Wii remote, giant paint-balloon slingshots, brain-computer interaction, kinetic typography, a poor man’s steadycam and more.

A CNET story about Lee’s contribution to the Kinect project, back when it was called Project Natal, explains how Lee gained attention for his projects using the Nintendo Wii to work as a head-tracking device, a multitouch user interface and more.

Check out the interesting observations made by a range of media and tech folks in a post by Technologizer titled, “The Future of Windows: 28 Perspectives and Proposals” on the 25th anniversary of the 1.0 version of the groundbreaking operating system.

The simple question being asked: How can Microsoft keep Windows relevant?

My wisecracking first answer: “Well, a more liberal policy on Windex, I suppose. Wait, you mean the software?”

Actually, I did try to recover, noting that I was not wedded to Apple (AAPL) systems, which I have mostly been using for years now, if Microsoft (MSFT) nailed touchscreen technology and worked better at innovative integration of social networking, software, Web and devices.

No surprise, blogger Robert Scoble had a laundry list of requests, such as these:

“I want everything I touch to be socialized. Why doesn’t Outlook know anything about Facebook? Why don’t my photos automatically get pushed to Flickr? Why don’t I have a news app on my desktop that brings in Tweets from Twitter? Why aren’t notifications built into the system at a deep level?”

ZDNet’s most excellent Microsoft watcher Mary-Jo Foley was more dramatic:

“But what Microsoft really needs to do to insure Windows’ continued relevance is to be unafraid of introducing a whole new operating system at some point. At some point, in the not-too-distant future, Windows is going to need to be supplanted by ‘the next big thing.’”

USA Today’s Ed Baig would not go that far:

“Now, I’m by no means suggesting that Microsoft has to start from scratch when it comes to the traditional Windows OS for computers, much less prescribing specific changes…But what I am saying is that Microsoft shouldn’t be burdened by the shackles of legacy computing as it looks ahead.”

No matter what, of this I am still certain: More Windex!

Or as Toula Portokalos said in the movie comedy, “My Big Fat Greek Wedding”: “My dad believed in two things: That Greeks should educate non-Greeks about being Greek and every ailment from psoriasis to poison ivy can be cured with Windex.”

Check out the other 24 ideas and add some of your own below.

Nash spent 19 years at Microsoft (MSFT), where he led development of Windows NT, Windows 2000 and, more infamously, helped manage fallout from the “Vista Capable” fiasco. He was among the more prominent public faces of Windows over the years, so it’s odd to see him stepping down so suddenly.

“We can confirm that Mike Nash is leaving Microsoft in a couple weeks,” Microsoft said in a statement. “In his 19 years, Mike made an impact in number of key roles at the company. We appreciate his service and wish him well.”

It’s not yet clear why Nash is leaving or where he’s headed, though Mary Jo Foley says he may soon surface on the Kindle team at Amazon (AMZN).

Twitter has already had repercussions in the courtroom. Now it has had them at Microsoft’s annual company meeting as well. Employee tweets from the gathering Thursday revealed that we may see a major update to the company’s Bing search engine as early as next week.

“Saw the demo of Bing 2.0, super imressive! Watch out its release next week,” said one catalogued by All About Microsoft’s Mary Jo Foley Yes, “impressive” is not spelled correctly in the tweet–maybe someone needs to Google (GOOG) a dictionary stat!

“BING 2.0 terrific,” enthused another.

“Watch out guys ! bing + silverlight in maps = amazing !! goodbye google.”

And another: “Bing 2.0′s upcoming search visualization is pretty sexy…”

Finally, my favorite: “wondering if the Bing team really wanted everyone at the company meeting to announce on twitter when Bing 2.0 is going to be released?”

Evidently not. Reached for comment, Microsoft (MSFT) had only this to say: “We’re very excited about some of the new Bing features set to roll out over the next few months, but have nothing to announce today.”

But perhaps next week.

Twitter has already had repercussions in the courtroom. Now it has had them at Microsoft’s annual company meeting as well. Employee tweets from the gathering Thursday revealed that we may see a major update to the company’s Bing search engine as early as next week.

“Saw the demo of Bing 2.0, super imressive! Watch out its release next week,” said one catalogued by All About Microsoft’s Mary Jo Foley Yes, “impressive” is not spelled correctly in the tweet–maybe someone needs to Google (GOOG) a dictionary stat!

“BING 2.0 terrific,” enthused another.

“Watch out guys ! bing + silverlight in maps = amazing !! goodbye google.”

And another: “Bing 2.0′s upcoming search visualization is pretty sexy…”

Finally, my favorite: “wondering if the Bing team really wanted everyone at the company meeting to announce on twitter when Bing 2.0 is going to be released?”

Evidently not. Reached for comment, Microsoft (MSFT) had only this to say: “We’re very excited about some of the new Bing features set to roll out over the next few months, but have nothing to announce today.”

But perhaps next week.

Reports claim that Microsoft Live Search, once known as Windows Live Search and, prior to that as MSN Search, will henceforth be known as…

Bing.

Which is pretty much what we’ve expected all along. Just what form Bing will take is another matter entirely. Will it simply be Live Search updated and recast? Or will it involve something more? Like perhaps that long-rumored deal with Yahoo (YHOO) BoomTown’s been talking about? Or what if, ZDNet’s Mary Jo Foley speculates, “Microsoft and Yahoo announce some kind of jointly-managed company that will trade ad sales for search engine placement. This ‘MicroHoo’ won’t be a merged Microsoft-Yahoo. Instead it will be some kind of ad/search entity.” What if, indeed. We may find out later this week.

UPDATE: Interesting. ZDNet’s Larry Dignan points to a report from Jeffries analyst Katherine Egbert that suggests Microsoft is indeed preparing for some sort of joint venture or acquisition. A quick excerpt:

“It’s also possible that Microsoft could debut a partnership or make an acquisition of some type that will bolster its online search presence. The software giant registered an LLC Corp. in Delaware last week, a move often made in advance of acquisitions or joint ventures. The registration gave rise to widespread speculation that Microsoft would acquire Citrix since the name of the LLC is somewhat similar to Microsoft’s code name for Citrix. While that’s possible, the timing of the registration and recent debt raise indicate that it might be more likely Microsoft uses the LLC to form a partnership that will boost the amount of traffic flowing through its search engine, perhaps through a partnership with Yahoo! or others.”

What’s in a name?

Well, a lot, actually, and BoomTown supposes it would be just like those Pacific Northwest types at Microsoft to name the new version of its search service “Bing,” presumably after the cherry that is a big product in the company’s home state.

That moniker is one of many being bandied about in a group the software giant could be considering for the big relaunch of its search service, which the company has been prepping.

Microsoft’s search service is currently called–zzzzz–Live Search.

“All About Microsoft” crack blogger Mary-Jo Foley of ZDNet recently wrote about the Bing name, which is registered to the company, as well as “Hook” and the one that Microsoft is using now as its test name, Kumo.

Kumo means “cloud” and “spider” in Japanese, which seems a wee bit esoteric.

Today, paidContent.org dropped “Sift” into the mix, although it seems to be related to mobile phones, along with “Swivel.”

I, for one, am feeling both like flour and getting dizzy at the thought of those names.

Foley at ZDnet feels the same, noting today in a post:

“(Would Microsoft be crazy enough to trademark its general Web search engine and its search engine for mobile with two different names, say Bing and Sift? As Windows Live has shown, truth can be stranger than fiction….)”

Microsoft (MSFT), of course, is keeping the name for its search service under tight wraps, but it is obviously going to be spending a shipload of money on its branding in another attempt to catch market leaders Google (GOOG) and Yahoo (YHOO).

Microsoft has been recently talking to Yahoo about a search partnership deal, although they are likely both to keep their brands and search products in any event.

Nonetheless, execs and minions in the know laugh at me loudly when I ask them to leak it to me.

(Note to anyone at Microsoft: Pretty please, someone leak it to me, even if it’s in the form of a memo from the leaky cauldron that is Yahoo.)

I doubt someone will, though. “It’s like Fort Knox secret,” said one Softie source, referring to the Kentucky fortress where the largest amount of the United States gold reserves are stored.

Hey, if Auric Goldfinger, OddJob and Pussy Galore could get into Fort Knox in that most excellent James Bond film, I can certainly find out the name of Microsoft’s search service!

Personally, I like Bing, and cherries from Washington state are indeed tasty (and coming soon too!)

According to the Heart of Washington Web site, its state’s cherries rate. Some fun factoids:

- Washington State produces more than 50 percent of all the sweet cherries in the United States.
- The Rainier cherry, which is yellow with a red blush, was made from a cross between two dark red cherries, the Van and Bing.
- Americans eat approximately 2.6 pounds of cherries per year.
- There are approximately 53 pitted cherries in one pound of cherries.
- The Bing cherry, which all cherries are measured against, was first developed in 1874 in Milwaukie, Ore.
- The Bing cherry was named after one of Seth Lewelling’s workers. The Bing cherry was developed by Seth Lewelling.
- Washington cherries are shipped around the world; the top three foreign markets are Canada, Taiwan and Japan.
- In 2001, there were 29,000 acres of sweet cherries in the state.
- The Washington cherry season begins in late May with some product seen at farmer’s markets. Commercial shipping begins around June 5, and will continue until mid-August. The peak of the season runs from June 20 to Aug. 1.

Plus, if Microsoft uses Bing, they could also rebrand their MSN online service, “Bada” and their email product, “Boom.”

Then, they can get Tony Soprano as their spokesman with the motto: “Bada Bing, Bada Boom, Notta Bada Algorithm!”

Or better still: “If you use Google, we’ll whack you!”

Now, that’s more like it.

Digital Daily’s John Paczkowski was unimpressed, as were Duncan Riley of TechCrunch and ZDNet’s Mary Jo Foley, for example.

But, to my mind, giving the Microsoft co-founder and chairman a hard time at this point is sort of like razzing Celine Dion, who coincidentally also just completed her own longtime run in Las Vegas in her Caesars Palace show, “A New Day.”

In other words, let’s just all admit that–as irksome as both have sometimes been–they do kind of grow on you after a while.

While that may be still debatable with Dion, I know, it is squarely the case with Gates, who has had the longest-running and most complicated relationship with the tech industry, even as he has dominated it for most of the past two-plus decades.

Gates’s impact will surely be chewed over in the history books in centuries hence–likely as not, always with the Yin to his Yang, Steve Jobs of Apple.

And, despite all the controversy his tenure has engendered (most especially the bullying antitrust behavior), as he transitions from his day-to-day role at Microsoft in July in what will likely be one of the longer goodbyes in the digital arena (including his sixth appearance at our D6 conference in May), I am guessing his influence will be seen as a net plus in the years to come.

While many level charges at Microsoft as a hindrance to innovation over the years, via the overwhelming dominance of its Windows operating system, the fact of the matter is that the digital industry has never been more fast-moving and quick-changing, and it remains one of the brighter spots in the pantheon of businesses worldwide.

While that is not because of Gates and Microsoft alone, it is also not in spite of them either. In fact, it’s quite bracing to see Gates attempt to make quick shifts over the years as technology has raced past him, an indication of just how powerful change is compared to the world’s richest man.

Very powerful, as it has turned out, and watching Gates try to keep up has been a perfect metaphor for all those who labor in the tech sector.

His famous December, 1995 sleeping-giant-has-awakened speech about the Internet was a case in point, as were his aggressive moves in later years into a wide range of arenas such as gaming, search, online services, social networking and even an attempt to take on the iPod hegemony with the Zune.

It is clear that most of Microsoft’s efforts outside of its core software business–and a great business it remains, by the way–have been less impressive. But it points to a key factor that never changes throughout the tech arena that even the giants are always vulnerable.

Now, going forward, what Microsoft will do post-Gates, of course, is all that matters.

Will it try to vaunt ahead in the search and portal arena and catch No. 1 Google by attempting to acquire Yahoo?

Will it use its popular Xbox to finally move successfully into the home-entertainment space, as evidenced by announcements Gates made last night at CES about deals with media giants like NBC Universal and others?

Can its MSN ever be more than just an also-ran portal?

What will happen to software in the years ahead as applications inevitably move to the Web?

Gates will not be the one to figure it all out, as he will be off, focused on his laudable philanthropic work when these questions and more get answered.

But even he could not have made an accurate guess onstage last night, as much as pundits wanted him to.

In fact, one of the more tiresome things to endure at CES–aside from the long lines–is always having to listen to the spate of predictions of what is to come, when, the truth is, no one really knows how it will all turn out.

It was always thus. After all, reaching way back in history: Wasn’t the launch of the Titantic supposed to herald in the age of high-tech super-boats? Of course, no one figured in the tragic results from its encounter with an iceberg.

But it did make for a pretty good song, so let’s enjoy a bit of Celine to send Bill Gates off on what one hopes is a much safer journey: