Late last night, Yahoo’s Tapan Bhat (pictured here) posted an update on the ongoing redesign of the Internet giant’s homepage, a massive undertaking given that 300 million people visit it each month.

Bhat, who is SVP of Yahoo’s Front Doors, Communities and Network Services, said the company was completing the first phase of its “bucket testing” and collecting feedback, but that, “Bottom line is we’re getting closer to the final design, but we’re not quite there yet.”

Indeed not, according to several sources at Yahoo (YHOO), who said that the massive underhaul of the homepage has been a much more complex, much dicier effort and was taking a lot longer than expected to launch.

(You can see examples of the redesign and also Bhat’s post last night on Yahoo’s corporate blog, Yodel Anecdotal, below.)

When the redesign–which is called “Metro” internally–was announced last September, Bhat said the changes would initially impact less than one percent of worldwide users in the United States, the United Kingdom, France and India.

But he also said they would then be rolled out to a wider and wider circle over the next six months. That has not happened, obviously.

Why? One key reason: Some results in limited testing showing actual declines in traffic, both from pointing outward more and also having people stay on the homepage with beefed-up “one-click” features.

The biggest issue is openness, which is aggressive in the new design, especially for Yahoo.

But it is a move pushed strongly by former CEO Jerry Yang. The idea is that Yahoo was a “starting point” for consumers was one of his key strategies.

That includes adding in lots of widget-like applications, or apps, onto the homepage from outside partners, and many more links to sites all over the Web.

“We’re pointing people off Yahoo and they are going,” said one exec about Yahoo’s first massive redesign since 2006. “While being open is a good thing, it also means less traffic inside Yahoo.”

Said another: “A lot of us want it to point more to great Yahoo services we offer instead of giving everyone else the benefit of our size.”

And the results so far, several sources said, have definitely caught the attention of new Yahoo CEO Carol Bartz, who some say might be considering slowing the wider rollout of the new homepage that insiders said was expected to be well on its way by spring.

Delay is, of course, common in massive projects like this, especially in this case, since the Yahoo homepage is a powerful “firehose” all over Yahoo and the Web.

When I contacted Bhat earlier this week to ask about the status of the homepage redesign, he would not comment about when it would roll out widely or about results of the testing, or give me access to the redesigned pages.

But he did kindly offer to walk me through the progress so far, next week at Yahoo HQ in Sunnyvale.

Then an update from Bhat suddenly appeared last night, in which he outlined that positive and negative feedback from that small number of Yahoo customers who have been using the new homepage.

Apparently, testers love the streamlined look and feel and the apps, and prefer the new page over the current one.

They also want even more apps, though, and think Yahoo should nix the darker color, as well as give easier access to mail and other services.

One assumes that is just a tiny bit of the feedback, especially given how dramatic the changes are.

In a post last fall when the redesign was announced by Bhat, I wrote that Yahoo was “employing a design that more significantly allows users to customize the starting page in a way that essentially amounts to a kind of My Yahoo-lite for everyone.”

That meant the ability to get to information and services more quickly, with links to outside email providers, initially from Google (GOOG) and Time Warner (TWX) online unit AOL.

The test design also includes a prominent left-hand vertical bar, with applications from both Yahoo properties and third-party services like eBay (EBAY), which are easy to add and remove.

Eventually, Bhat said at the time, there would be thousands of apps, from Yahoo and also from outside developers.

“People want broadcast and narrowcast at the same time,” said Bhat then. “They want choices, but they also don’t want to do the work involved [in programming their own homepage].”

Noting that it was not the dashboard approach of My Yahoo or iGoogle, Bhat added at the time: “People are time-starved…so it is important to the user to get to their relevant daily information as quickly as possible without having to click around.”

But, said several sources at Yahoo who have seen the Metro results so far, by giving them more options, especially outside ones, clicking around is precisely what users do.

More next week when I visit with Bhat…

Until then, here is a screenshot Bhat posted of the latest look for Metro last night, and below it are several screenshots of the initial Yahoo redesign, as well as Yahoo’s current homepage (click on the images to make them larger).

In addition, Bhat’s whole post last night about Metro’s progress is at the very bottom.

This is the latest iteration of the homepage redesign:

This is the homepage that was rolled out in September 2007:

This is a homepage rolled out in September 2007 that includes more outside apps:

This is the homepage rolled out in September 2007 that shows how email from Yahoo and Google and AOL would look:

This is a screenshot of Yahoo’s current home page:

And here is the full text of the Bhat post from last night, below.

Update on our new homepage testing

Tapan Bhat
Senior Vice President, Yahoo! Front Doors, Communities and Network Services

Here’s a video interview I did yesterday at the San Francisco event where Yahoo finally launched a lot of the new open and social elements that it has long said it was injecting into its most popular products.

BoomTown talked with the key movers of the initiatives: Ash Patel, Yahoo’s EVP of its Audience Product Division, and Tapan Bhat, its SVP of its Front Doors, Communities and Network Services.

(You can see screen shots and an official Yahoo video of the new features here.)

The initiatives Yahoo (YHOO) finally released into the wild have been long in the making, first discussed as just vaporware by Yahoo CEO Jerry Yang at last year’s Consumer Electronics Show in Las Vegas (see that video below too).

Yahoo also hosted a session at its Sunnyvale HQ about its open plans in the fall.

And, after the longest of gestation periods, they arrived yesterday, in an impressive rollout.

The changes include some very deft rejiggering of Yahoo Mail, called a “smarter inbox,” with a new dashboard welcome page, easier ways to make connections, more filtered views, updates and third-party apps integrated into the application.

I thought the changes to the mail product were the most interesting, especially given the hundreds of millions of people using the product. It’s an interesting choice for a social entry point, aiming to give nonsocial-networking types enough of a taste of it without inundating them.

Of particular note were the third-party applications, such as for WordPress and Flickr, that launch nicely right in the email program.

Also cool was one app from Xoopit that surfaces old photos and photo links lost in the musty archives of old emails.

Yahoo also debuted an enhanced version of the homepage (previously announced in September) and My Yahoo, as well as a new toolbar and socialization elements added to its popular media properties.

It remains to be seen how popular these changes will become, especially since many consumers already have their social-networking lives on Facebook or MySpace.

In addition, both Time Warner (TWX) online unit AOL and Microsoft (MSFT) have rolled out similar social and open changes to their sites recently, making it super-confusing for everyone.

But, better late than never, I always say, so here’s Bhat and Patel talking about Yahoo’s new stuff.

I had to load the video onto YouTube, as Brightcove had snafus (also below is Yang talking about the concepts at CES in January 2008):

Tapan Bhat and Ash Patel

Jerry Yang at January 2008 CES

“By tying together our audience and context, we can have even more relevant experiences,” said Tapan Bhat, senior vice president of Front Doors and Network Services at Yahoo (YHOO). “All our properties are going to be socialized…and fundamentally, it is going to change how information is consumed.”

The now-socialized Yahoo Mail is to go live today at 1 p.m. PST. My Yahoo, the Yahoo Toolbar, Yahoo TV and Yahoo Music go live later this week.

Yahoo will begin testing out versions of its new main homepage to a minuscule number of users starting tomorrow, employing a design that more significantly allows users to customize the starting page in a way that essentially amounts to a kind of My Yahoo-lite for everyone.

The redesign is a huge and complex endeavor. According to comScore’s July stats, Yahoo (YHOO) has about 82 million daily U.S. visitors to its homepages.

Most of those visitors use the Yahoo main homepage, which is fully programmed by the company.

Making such a shift will also be a big perceptual deal for Yahoo, which needs to prove it has remained current and open, especially compared to faster-growing rivals like Facebook.

Yahoo has been trying to reinvigorate itself of late, after a disastrous takeover battle with Microsoft (MSFT) and a weakening of its business and its stock price.

Because of all this, the Yahoo brand has also doubtlessly been tarnished.

Thus, making a success of its new design is critical, and Yahoo’s CEO Jerry Yang has been touting the idea that Yahoo must be the “starting point” to the Web for users.

To respond to users who want to access information and services more quickly, the new streamlined homepage will be much shorter, be made up of more “snippets” and have links to outside email providers (initially, Google and AOL).

Most importantly, the new homepage will prominently feature a left-hand vertical bar, which has applications from both Yahoo properties and third-party services like eBay.

These apps can be added and subtracted easily. Eventually, there will be thousands of apps, from Yahoo and, after vetting, from outside developers.

(See screenshots below comparing the old Yahoo with three of the new ones.)

The changes will initially impact less than one percent of worldwide users in the United States, the United Kingdom, France and India. But they will be rolled out to a wider and wider circle over the next six months.

“People want broadcast and narrowcast at the same time,” said Tapan Bhat (pictured here), Yahoo’s SVP of Front Doors, Communities and Network Services, in an interview with BoomTown. “They want choices, but they also don’t want to do the work involved [in programming their own homepage].”

Thus, Yahoo apparently is going to give users both in its first major redesign since 2006, which it has been working on for two years.

The major components of the page will still remain close to the old one, but jazzed up and shifted around.

For example. the apps will be moved into the position where Yahoo services links used to be, and vice versa.

As before, there will be a main information module at the center of the homepage, “pulse” and news area on the bottom-right and -left, and search and navigation at the very top.

Bhat said the changes were made after a lot of research of user behavior and also after paying attention to key trends such as the widgetization of applications and the trend toward openness.

The new look is not aimed at the hardcore user, who might want to endlessly tweak the Yahoo homepage, although those options will remain for those who prefer them.

But, Bhat said, more people wanted quick access to things like email without having to launch apps. Instead, users will be able to see it all on the main page.

“It is not a dashboard approach of My Yahoo or iGoogle,” he said. “People are time-starved … so it is important to the user to get to their relevant daily information as quickly as possible without having to click around.”

Bhat said the rollout tomorrow will not be final and that Yahoo will keep making changes, depending on reaction.

“We don’t want 300 million people opposed to change,” said Bhat, who wrote a blog post on the changes here. “So, we are going to be listening hard.”

Here are screenshots (click on images to make them larger):

This is the home page that will be rolled out tomorrow

This is a home page that includes more outside apps

This is the home page that shows how email from Yahoo and Google and AOL would look

This is Yahoo’s current home page, as of tonight