Way back in the fall of 2001, when BoomTown was but a less-aged version of myself, I attended a keynote speech at the now-defunct Comdex show in Las Vegas, where Microsoft Chairman Bill Gates continued to bang the drum for one of his long-running obsessions: The tablet computer.

“The tablet takes cutting-edge PC technology and makes it available whenever you want it, which is why I’m already using a tablet as my everyday computer,” Gates said at the time to the audience gathered at the MGM Grand Garden Arena. “It’s a PC that is virtually without limits and within five years I predict it will be the most popular form of PC sold in America.”

Well, that did not happen.

But Gates did keep his promise about using a tablet–he kept on doing so and also harping on the topic all the time, with Microsoft even releasing a giant tabletop Surface several years ago and supporting multitouch in the coming Windows 7.

I recall Gates talking about the idea of how important the tablet is on innumerable occasions, more than any single concept I can recall.

It is ironic, then, that all the hype has suddenly and firmly coalesced around the particulars of the tablet that Apple (AAPL) will be unveiling in the coming months.

And now that CEO Steve Jobs is back fine-tuning the whole shebang, the obsession has moved into overdrive, punctuated only by endless stories about every single new app for the iPhone and fights over some of those new apps for the iPhone.

It’s a complete aside, but how ironic is it that Apple has somehow managed to make Google (GOOG)–the Skynet of the Internet–seem like a victim over this Google Voice shrillathon?

Back to the Apple tablet, which is playbook hype for iconic computer giant.

Besides being a secret project everyone in Silicon Valley seems to know about, the coming device is enjoying full-on breathless reportage of every single possible button and every possible feature, with every single bit of functionality parsed, dissected, masticated and spat back out.

But let’s be honest–in the end, this Apple tablet is probably going to be some kind of giant, sleeker, more glorified and doubtlessly niftier version of the iPod touch, called the iTab or the iPad or the iAmSoCoolAren’tI?, at three times the price.

Now, as it turns out, Microsoft (MSFT) is also at work on a table device, this time called the Courier.

This development became known recently after a demo video of it in use was somehow “leaked”–three guesses about which software giant in Redmond, Wash., put that out, and the first two don’t count!–to Gizmodo.

It seems to be some kind of tablet mixed with a journal mixed with a day planner, with a hinged two-page look. Digital writing and a stylus are involved, but also lots of touchscreen action.

Well, I say, good for Microsoft, and perhaps for Gates, who has now mostly disengaged himself from the day-to-day particulars of the behemoth he built, including the Courier.

Nonetheless, in all likelihood, Apple will still garner the most buzz in this tablet faceoff and will, more than likely, sell more.

A delicious irony, given that in their fascinating and long-running rivalry, it has usually been Jobs playing the hopeless dreamer and Gates the one who makes bank from the dreams of others.

No longer, which should make this round between Microsoft and Apple the most interesting of all.

Speaking of dreaming of dreams, it is always a good time to post the video of Susan Boyle singing “I Dreamed a Dream”:

For one thing, the Microsoft (MSFT) device is a booklet, not a tablet; in other words, it’s designed to fold. For another, it supports input via multitouch and, in an ironic nod to Apple’s Newton, stylus.

From Gizmodo, which somehow managed to uncover a bevy of information about the device:

“The Courier user experience presented here is almost the exact opposite of what everyone expects the Apple tablet to be, a kung fu eagle claw to Apple’s tiger style. It’s complex: Two screens, a mashup of a pen-dominated interface with several types of multitouch finger gestures, and multiple graphically complex themes, modes and applications. (Our favorite UI bit? The hinge doubles as a ‘pocket’ to hold items you want move from one page to another.) Microsoft’s tablet heritage is digital ink-oriented, and this interface, while unlike anything we’ve seen before, clearly draws from that, its work with the Surface touch computer and even the Zune HD.”

In remarks at Microsoft’s Worldwide Partner Conference today, COO Kevin Turner said Microsoft has settled on a location for the retail stores it announced earlier this year: Within spitting distance of Apple stores. “We will have some retail stores that are opened up right next door to Apple stores this fall,” he said.

There goes the neighborhood, right? Anyway…

So Microsoft is going to play McDonald’s (MCD) to Apple’s Burger King (BKC). Makes sense. Apple’s retail locations are very well chosen. Microsoft, if it’s going to go this route, would be wise to have stores there as well. As economic theorists Charles ReVelle and Harold Hotelling once observed, “The best position for a new vendor is back-to-back with the well-positioned first vendor, allowing an even split of the market. Any other position of the new vendor would have given that new entrant a smaller market share.”

And one could argue that Redmond might benefit from a retail presence that brings all its wares together in a single “shopping experience”–Windows, Xbox, Zune. All that partner hardware. Surface. Put a Project Natal booth at the back of the store to draw foot traffic and who knows what might happen?

That’s not to say it’s a particularly good or bad idea to hire a former Dreamworks and Wal-Mart (WMT) exec named David Porter (pictured here) as vice president of retail stores to create Microsoft-branded stores–or as the company announced yesterday, “to create a better PC and Microsoft retail purchase experience.”

While Microsoft (MSFT) sells most of its consumer products via big-box retail stores like Best Buy (BBY), and the retail market for just about everything is weak, Apple (AAPL) has definitively proven that a well-designed retail store can be a powerful marketing tool.

The visually stunning and infectiously fun Apple stores, in fact, have been an important part of its recent surge in mainstream consumer appeal, becoming hubs of activity and even social life in its mostly big-city locations.

In fact, that was just the idea behind microsoftSF, which was located in San Francisco’s Metreon Sony Entertainment Center.

The huge 8,500-square-foot store, with 160 Microsoft products and related software and hardware from 30 partners, was billed in a June 1999 press release as “an interactive, hands-on retail environment in which people of all ages, from all walks of life and at all levels of technological expertise can explore the benefits technology can bring them. Far more than just another computer store, microsoftSF is a showcase for the latest technology from Microsoft and the hardware and software companies with which it collaborates.”

The microsoftSF store, which I visited several times (but bought nothing, although I was mostly a PC user at the time), was very attractive and the only such store in the world, with a “Road Warrior” arena, a lounge, a gaming area and more.

Said the press release: “To make all this possible, microsoftSF deploys Microsoft Windows and more than 100,000 feet of copper cable, 60 Sony PCs, 18 laptop docking stations, four dual-processor servers powered by Hewlett-Packard Net Servers, a Cisco Systems network, and an array of hidden audio speakers that create 16 individually controlled sound zones.”

And Microsoft CEO (then President) Steve Ballmer weighed in enthusiastically:

“We are delighted to be able to showcase in this one-of-a-kind retail environment the entire range of Microsoft software and hardware, as well as the technology of other companies who share the vision of how the PC and the Internet can empower people any time, anywhere. San Francisco and the Silicon Valley are home to the world’s largest and one of the most sophisticated high-tech audiences, so this was the natural place to create this site–dedicated to showing, in an interactive environment, the way technology can enhance our working, learning, living and playing.”

Not so much, as it turned out. The store closed in 2001.

But that does not necessarily mean that the new and much expanded efforts will have the same experience. The Metreon, which was sold off by Sony, was an odd mall then and still is, although its movie theater is successful.

And, in this effort, Microsoft will have control of the whole enchilada.

Plus, if well done, it is not such a bad idea to have a place–perhaps only in highly-trafficked locations in big cities–to show off its consumer wares, especially its popular Xbox 360 and other products (please, not the Zune!).

More importantly, given the disaster that has been the Windows Vista experience, it is probably a good idea to have a place to get people interested in Windows 7, especially its touch capabilities, when it rolls out this year.

Also, I still like the Surface interactive table, even if it is mocked in a popular video as a “big-ass table.”

Of course, only Apple stores have done well so far in this genre, as everyone, from Gateway (GTW), Sony (SNE), Nokia (NOK), Helio and Palm (PALM), has had rough retail experiences.

So, Porter certainly has his work cut out for him, at least judging from the press release from Microsoft yesterday:

“Defining the time frame, locations and specifics for planned Microsoft-branded retail stores will be Porter’s first order of business. The purpose of opening these stores is to create deeper engagement with consumers and continue to learn firsthand about what they want and how they buy.”

Said Porter: “There are tremendous opportunities ahead for Microsoft to create a world-class shopping experience for our customers. I am excited about helping consumers make more informed decisions about their PC and software purchases, and we’ll share learnings from our stores with our existing retail and OEM partners that are critical to our success.”

He’ll have to wait to see if the second time is a charm.

During Microsoft’s 12th annual CEO Summit today, Chairman Bill Gates demonstrated TouchWall, a 4-by-6-foot multitouch computer that can transform home and office walls into computers. Gates calls TouchWall “the whiteboard of the future,” and it may turn out to be just that–if Microsoft can get it to market at a reasonable price. The company’s other multitouch computer, Surface, is currently shipping for about $10,000.

During Microsoft’s 12th annual CEO Summit today, Chairman Bill Gates demonstrated TouchWall, a 4-by-6-foot multitouch computer that can transform home and office walls into computers. Gates calls TouchWall “the whiteboard of the future,” and it may turn out to be just that–if Microsoft can get it to market at a reasonable price. The company’s other multitouch computer, Surface, is currently shipping for about $10,000.

Surface actually got a demo at our D5 conference last May, but BoomTown has been partial to this very funny video spoof on the “big-assed table”:

This interface is generally called “multitouch,” and it involves using one or more fingers on a screen or touchpad to perform special gestures that manipulate lists or objects on a screen — without moving a mouse, pressing buttons, turning scroll wheels or striking keys.

The best-known example of the interface is on Apple’s iPhone and iPod Touch devices. It allows you, for example, to rapidly flip through photos, lists of emails or song titles by merely “flicking” a fingertip on its screen, or to resize a photo by “pinching” the image with two fingers. And, this month, Apple moved some of these multitouch features onto a laptop, its new MacBook Air, where fingertip actions are performed on an oversized touchpad rather than on a screen.

Apple didn’t invent the multitouch concept. Academic and commercial researchers, and small, obscure companies, have been working on it for years. Apple is adapting the concept, adding its own ideas and popularizing it — just as it did in the 1980s with the mouse and the graphical user interface, which had also been invented elsewhere.

Rival companies are scrambling to add multitouch features to laptops and other digital gadgets. Synaptics, a leading supplier of touchpads for laptop makers who compete with Apple, has announced that shortly it will incorporate several multitouch features into its touchpads. Microsoft is producing a coffee-table-size computer called the Surface, meant for hotels, casinos and retail stores, that uses multitouch finger gestures to move around digital objects such as photos, play games and browse through product options. Hewlett-Packard developed a prototype of a similar multitouch coffee-table computer for home use.

Rotating a photo on Apple’s MacBook Air

And, in the back rooms of this month’s Consumer Electronics Show in Las Vegas, various cellphone makers, seeking to emulate the iPhone, were showing off their own unannounced efforts at multitouch. One prominent cellphone maker, Taiwan-based HTC, has already built a phone, called the Touch, which slaps a rudimentary multitouch interface on Microsoft’s Windows Mobile operating system.

The basic touch screen, of course, is an old and familiar thing. People use them every day to get money from ATMs or to check into flights at airport kiosks. Microsoft’s Tablet computers and Palm’s Treo cellphones, among others, use touch screens that employ styluses or fingers to move cursors, select icons and other items, and even to write on the screen.

But multitouch interfaces are potentially much more versatile. They allow you to use your fingers to manipulate virtual objects on a screen as if they were real, sort of the way Tom Cruise’s character did in the 2002 Steven Spielberg science-fiction film, “Minority Report.” For example, Microsoft’s Surface allows users to rearrange groups of digital photos by just dragging them around on the table top as if they were actual paper prints.

Unlike the touch screens on, say, ATMs, multitouch devices are able to distinguish between the press of a single finger and the press of multiple fingers, and to interpret the motions or gestures you make. They take different actions depending on how many fingers they detect and which gestures a user performs.

On Apple’s MacBook Air, the touchpad still allows you to use one finger to move the cursor and click like a mouse can. But, optionally, it can do much more using multitouch gestures.

You can rotate photos by just touching two fingers to the touchpad and moving the images on the screen as you wish. You can quickly move back and forth through a series of Web pages or photos by “swiping,” or placing three fingers on the touchpad and moving them rapidly sideways. And you can shrink or expand a photo, or zoom in and out on a Web page, by pinching the image.

All recent Mac laptops, not just the new Air, have the optional ability to scroll through a screen without using any button or special zone on the touchpad. You just place two fingers, instead of one, anywhere on the touchpad and drag them across its surface.

In addition to pinching, the new Synaptics touchpads have a feature called “ChiralMotion,” which achieves rapid scrolling by moving two fingers in a circle anywhere on the touchpad. Another Synaptics feature, called Momentum, lets you emulate a trackball by flicking a single finger across the touchpad. This gesture can move an object on screen, like a virtual bowling ball in a game, with the illusion of inertia.

It’s too early to know if the new multitouch approach will ever be as big as the mouse-driven graphical user interface. But it’s already evident that it offers real advantages on devices where a mouse isn’t possible or convenient to use, or the decades-old interface of menus and folders is too cumbersome.

Email me at mossberg@wsj.com. Find all my columns and videos online, free, at the new All Things Digital Web site, http://walt.allthingsd.com.

Digital Cameras

Megapixels: This term describes the highest resolution photo a camera can take. Often mistaken as the most important factor in a digital camera, a high megapixel count — such as 10MP or more — isn’t necessary for the average user unless he or she plans on heavily editing or enlarging photos. Most new digicams offer between five and eight megapixels, which is usually more than enough.

Optical or Digital Zoom: Optical zoom, determined by the physical movement of a lens, matters much more than digital zoom, which digitally alters an image using the camera’s internal computer. Camera companies still try to confuse potential buyers by listing a camera’s total zoom, or the optical and digital zooms multiplied together. Ignore total zoom numbers and instead focus on optical, which now averages around 5x for many new cameras.

Image Stabilization: When generously sized LCD viewing screens started replacing optical viewfinders, they also forced users to hold their cameras at arm’s length, making for plenty of blurry photographs. To remedy this, camera manufacturers have added image stabilization, tools once found only in high-end SLR models. Optical (also called “mechanical”) and digital image stabilization correct for unsteady hands and moving subjects, respectively. Cameras with both types advertise dual image stabilization, which corrects for both situations and costs more.

Mobile Devices

HSDPA and EVDO: HSDPA, or High Speed Downlink Packet Access, is the name for AT&T‘s 3G, or third generation, mobile network that operates at roughly the speed of a slower DSL in a home. HSDPA is available in most major metropolitan areas and is seen as the competitor to Verizon and Sprint’s EVDO (Evolution Data Only) networks, though the popular iPhone runs on AT&T’s network using Wi-Fi and EDGE technology rather than HSDPA.

Multi-Touch Technology: Most popularly found on Apple’s iPhone and iPod touch, multi-touch is starting to show up in other products, such as in Microsoft‘s Surface, a coffee-table-like computer. Rather than just responding to on-screen touches, this technology enables moving, resizing and zooming pictures and Web pages using one or more fingers simultaneously. Look for many more devices — mobile and otherwise — to incorporate multi-touch in the future.

GPS: Global Positioning Systems are most often found in cars — either built-in or on portable devices from companies like Garmin and TomTom. These gadgets use satellite technology to determine geographic location, and high-end models even display Web content like news and weather along with directions. GPS integration in mobile devices can be used to plot routes in cars, can help users find nearby businesses while on the go and can link friends by showing one where the other is located and what they’re doing.

Digital Music

DRM: Digital rights management is a set of standards that protect the intellectual property rights of online content like music and videos, preventing it from being illegally distributed across the Web. In the past year, Vivendi‘s Universal Music Group, Apple and (most recently) Sony BMG said they will start selling DRM-free versions of songs, often for a higher price. In Apple’s iTunes store, these files are called “iTunes Plus” and aren’t restricted like other iTunes content.

MP3: MP3 files are open, without any DRM restrictions. Files that you rip (copy) from your own CDs are usually converted into MP3s, though iTunes users can automatically rip tracks into that program’s special format, called AAC. MP3 files can be uploaded to social-networking sites for sharing with friends and online communities.

These file types are protected by rights that tie them to specific players. Generally, AAC files make up the majority of tracks sold on Apple’s iTunes store and play only on Apple’s iPods; WMA files are Microsoft’s version of proprietary files.

Wi-Fi

The popularity of Wireless Fidelity, or Wi-Fi, brings this technology to more and more portable devices like the iPod Touch and Microsoft Zune and gives companies good reason to incorporate Wi-Fi receivers in new computers — laptops and desktops alike. While available in many flavors, different letters like b, g, a and n stand behind Wi-Fi’s more technical name, 802.11, to help discern one version from another according to characteristics like speed and compatibility. The latest version, “n,” offers the greatest range and speed, and “n” devices are usually compatible with earlier versions.

Televisions

HDTV: High-definition television has now become the standard, capable of displaying vastly better pictures, provided the source is also HD. Today’s more popular flat panel HD televisions are LCDs, or liquid crystal displays, though plasmas still hold their own. Recording HD content can’t be done with a regular digital video recorder; instead, a special HD recorder is required to capture this higher quality content.

480p vs. 1080i vs. 720p vs. 1080p: These numbers refer to the resolution, or sharpness, of a digital display, while “p” stands for progressive and “i” stands for interlaced. A resolution of 480p, known as EDTV or Enhanced Definition TV, is found most often in low-end plasmas or LCD screens. A TV with a resolution of 1080p is currently considered the Holy Grail, and costs the most. But 1080p pictures usually can’t be distinguished from less expensive 1080i or 720p pictures by average viewers at the typical distances from which most folks watch TV.

Blu-ray vs. HD DVD: Blu-ray and HD DVD are incompatible high-definition disc formats that continue to fight a seemingly endless battle to replace the DVD. The Blu-ray camp is led by Sony and the HD DVD camp is led by Toshiba. The two formats aren’t so different, technically speaking, but their very existence is confusing to consumers. The recent decision made by Time Warner‘s Warner Bros. to use Blu-ray gives Sony’s side a boost, and now Viacom‘s Paramount is rumored to be switching to Blu-ray from HD DVD. Dual-format players from Samsung and LG offer some solace.

Email: mossbergsolution@wsj.com

7:40 p.m. A few more moments of guitar wankery from Slash and … well, I guess that’s it. Bach, not Gates, ends the keynote. “I’ll see you again next year,” he says as Gates waves briefly and leaves the stage. Must be rushing off to that billion-dollar-a-hand poker game at Caesars … And the lights go up. That is it. Quite a disappointment. Take away the celebrity appearances and what’s left is a well-rehearsed series of anticlimaxes and rehashes of demos past. A pity, really.
7:38 p.m.: Gates: She’s pretty good. But I’ve got my own ringer here … (Pleeeeease let it be Wayne Newton)
Nope. It’s Carrot Top. Kidding … It’s Slash it’s from Guns n’ Roses playing “Welcome to the Jungle” for real. He doesn’t miss a note either. Dry ice smoke and flashing lights.
7:36 p.m.: Bach challenges Gates to a Guitar Hero 3 match. Bach invites Guitar Hero champion Kelly Clarkson to play against Gates. … She plays Guns n’ Roses’ “Welcome to the Jungle” and doesn’t miss a note.
7:35 p.m.: Gates using the device to navigate video archives of keynotes past. Microsoft’s version of iTunes’ ‘Cover Flow.’ Messy.
7:33 p.m.: Gates uses the device to scan a photo of the Vegas skyline behind him. Clicks on the Venetian. The screen displays information for his keynote address. Pops another note indicating Ballmer’s playing nickel slots at another casino. Laughter.
7:31 p.m.: Bach brings Gates back onstage to discuss the future. … Gates takes the stage again with a handheld video recognition device. He points it at Bach and clicks. It recognizes Bach, displays his name onscreen, along with a note saying he owes Gates money.
7:29 p.m.: Fellow presenter uses Tellme to search out a movie theater, browse movie listings, purchase tickets for a movie and then send them to a friend. Pretty slick, especially given the size of the mobile advertising market.
7:27 p.m.: On to Windows Mobile and Microsoft’s Tellme service.
7:26 p.m.: Bach and fellow presenter now demoing “Sync”–an in-car voice-command technology that enables Zune owners to sync their Zunes to their car stereos and then navigate their music libraries with voice commands.
7:24 p.m.: Bach talks about Zune Social as a service that drives music transactions from discovery to purchase. Find a song you like on a friend’s page, click on it and purchase from Zune Marketplace. Again, haven’t we heard all this before?
7:22 p.m.: Listening habits are tracked via “cards.” Bands can create their own Zune Social pages as well. Essentially, MySpace for music.
7:20 p.m.: Zune Social apparently tracks your listening habits in real-time. It’s all about “people-powered music discovery.”
7:18 p.m.: Bach talking up the Zune now. … Demoing Zune Social.
7:17 p.m.: British Telecom is to begin selling Xbox 360s as Media-Room based set-top boxes. Price of relocation to UK not included with activation fee …
7:15 p.m.: In addition to this, MGM will also be adding its film library to Xbox Live. End result: Twice as many hours of on-demand programming as any cable provider out there.
7:14 p.m.: ABC and Disney will be bringing their programming to Xbox Live.
7:13 p.m.: Gates brings Robbie Bach onstage to talk about Xbox 360.
7:11 p.m.: Using Microsoft Silverlight technology, NBC and MSN will put some 3,000 hours of high-definition footage of the Beijing Olympics online. Wow: 3,000 hours of video. What a massive effort. First of its kind.
7:10 p.m.: Gates commenting on broadcast television: “It simply isn’t as fulfilling an experience as online video.”
Here comes another video segment. … Bob Costas pitching.
7:09 p.m.: Moving on to Silverlight. Gates says NBC has chosen Microsoft as its exclusive online video partner for the 2008 Olympics.
7:08 p.m.: He finishes up the design, lays his phone down on the screen and it automatically emails his design to friends for review.
7:07 p.m.: Gates, thankfully, back onstage for another demo. Wait, what’s this. Another Surface demo?! Didn’t we see this last year? Yes, we did–but given by Steve Ballmer, not Gates. Gates using Microsoft’s Surface multitouch computer to demo a snowboard-design service.
7:05 p.m.: The big achievement being touted here seems to be the connection between these services and the single log-on. As Dan Aykroyd might say: Isn’t that AMAZING?
7:04 p.m.: Windows Live Photo Gallery … in browser photo editing, sharing (via email or Flickr) and exporting to blog. Bor-ing. They would have been better off playing the farewell video again. That ‘Bib Pimpin’ segment was comedy gold.
7:02 p.m.: First up: Windows Live Calendar now with … wait for it … multiple calendar overlays (YAY! sigh…)
But wait, there’s more … Windows Live Events, an invitation/event organizing service. They really should have called it Windows Live eVites …)
7 p.m.: Gates brings Mika Krammer, a director of product management for Windows, onstage to demo some new features of Windows Live.
6:59 p.m.: And here comes the product line-up overview: Windows Vista, Windows Live, Windows Mobile ….
6:58 p.m.: A key building block of the second digital decade, the centerpiece building block will be. … (drum roll, please) … Microsoft Windows!
6:56 p.m.: “Devices will know our context and location,” Gates continues. There will be new modes of interaction and natural interfaces. “We’re very interested in simpler ways of navigating our technology.” If he were going to announce Microsoft Bob 2.0, now would be the perfect time to do it. Nope. Ah, well. “The software industry will build these new modes of interaction–touch, voice, gesture–into the software.”
6:55 p.m.: And now for a few predictions. “In the future Microsoft products and services will run on the desktop and in the cloud,” he says. Would that be the cloud with all the Google AdWords all over it? “And 3-D environments will exist for Web experiences, high-quality video and audio in a pervasive way.” Make way for Third Life …
“Devices and services will be connected.” As an example, Gates talks about photos automatically being uploaded to digital-memory application.
6:54 p.m.: Gates back onstage discussing the coming transition in leadership at Microsoft when he will step down from his day-to-day role as the company’s chairman. He says Microsoft is aligned well for success with Steve Ballmer, Ray Ozzie and others.
Moving on … “The second digital decade heralds the following: high definition experience is everywhere.”
6:52 p.m.: Video ends to thunderous applause. UPDATE: Here’s the video:

6:50 p.m.: Footage of Gates cleaning out desk, taking box of office supplies to his Ford Focus. Ford Focus–now that’s funny.
Cut to Peter Jennings: “Let’s face it, all of us here at NBC News will miss reporting on this brilliant, powerful, sexy man who just doesn’t like to pay more than $7 on a haircut.”
6:49 p.m.: Gates calls Jon Stewart and asks about a co-anchor job. Stewart turns him down.
Gates calls Hillary Clinton. She turns him down as a running mate, so he calls Obama:
Gates: It’s Bill.
Obama: Bill Shatner?
Gates: No, Bill!
Obama: Bill Clinton?
6:48 p.m.: Steven Spielberg reviews Gates’s audition reel (“X-Men” and “Matrix” re-enactments; Gates in Wolverine get-up, Gates and Ballmer in Matrix-style black trench coats) and denies him a part in his next film.
6:47 p.m.: Footage of Gates calling Bono in the middle of a U2 concert. Gates plays guitar riff on “Guitar Hero” for Bono. Bono tells him there’s no place for him in U2. Which is OK, I’m sure, since there’s certainly no place for Bono at Microsoft.
6:46 p.m.: My God … Gates in recording studio with Jay-Z… Holy … Gates singing “Big Pimpin’.” Wild laughter and applause. “It was great,” Jay-Z tells Gates, before turning to the camera and muttering, “not so much.”
6:45 p.m.: Various Microsoft execs talking about Gates. Clip of Gates in office playing with action figures: “Never doubt the power of software.” Laughter.
Quickly followed by Gates in gym working out with Matthew McConaughey, who doesn’t really strike you as a Windows user.
6:44 p.m.: “This is my last keynote. Come July, it will be the first time I won’t be working at Microsoft since I was 17.” And here comes the inevitable farewell video ….
6:42 p.m.: He mentions the progression of digital entertainment–music, movies, photos. The trend is clear: all media and entertainment will be software driven in the second digital decade. And in the third, it will all be driven by Microsoft Windows! Muahahahahaha. Kidding … Moving on … “I’ll soon step down as chairman.”
6:40 p.m.: Gates finally takes the stage. He recalls his first keynote in 1994, a time when Windows ’95 was first coming together. “It was the beginning of the first digital decade.” Ah yes, “The Digital Decade.”
6:39 p.m.: Here comes another silly video, this one set to “Believe in Magic,” featuring people from all walks of life extraordinarily happy to be using Microsoft products. They look like they’re all on Ecstasy. And it’s probably safe to say that nobody has ever looked like that while using a Microsoft product.
6:35 p.m.: Shapiro says Gates has given 10 CES keynotes, eight consecutively. He’s spoken at CES 11 times. Guess he must be the Guinness World Record holder. How ’bout that, huh?
6:33 p.m.: And here comes Gates. Wait–that’s not Gates. It’s Consumer Electronics Association President Gary Shapiro. OH RAPTURE! Disappointed applause. “In my opinion these are the best four days of the year,” says Shapiro. (Tell that to Steve Jobs next week.)
6:30 p.m.: Silly CES promo video… Correction: advertisement.
6:29 p.m.: Getting started right on time. Guess Jim Allchin and the Vista development team didn’t do Gates’s makeup this time around. Lights dim….
6:25 p.m.: In a few moments, Bill Gates, the Frank Sinatra of the Dat(a) Pack (Steve Jobs presumably in the Dean Martin role), will deliver his 11th Consumer Electronics Show keynote–and by many projections his last.
6:00 p.m.: The ballroom of the Venetian Resort Hotel Casino is pretty much packed, and like most things in Las Vegas it’s BIG. But it has to be the worst pre-keynote music EVER: from 1982 video game soundtrack to passed-out-after-the-rave techno to European disco to new wave. Really covering all the genres. At this rate, Bill Gates could take the stage to the theme from “The Dukes of Hazzard” or the “Annie” soundtrack.

7:40 p.m. A few more moments of guitar wankery from Slash and … well, I guess that’s it. Bach, not Gates, ends the keynote. “I’ll see you again next year,” he says as Gates waves briefly and leaves the stage. Must be rushing off to that billion-dollar-a-hand poker game at Caesars … And the lights go up. That is it. Quite a disappointment. Take away the celebrity appearances and what’s left is a well-rehearsed series of anticlimaxes and rehashes of demos past. A pity, really.
7:38 p.m.: Gates: She’s pretty good. But I’ve got my own ringer here … (Pleeeeease let it be Wayne Newton)
Nope. It’s Carrot Top. Kidding … It’s Slash it’s from Guns n’ Roses playing “Welcome to the Jungle” for real. He doesn’t miss a note either. Dry ice smoke and flashing lights.
7:36 p.m.: Bach challenges Gates to a Guitar Hero 3 match. Bach invites Guitar Hero champion Kelly Clarkson to play against Gates. … She plays Guns n’ Roses’ “Welcome to the Jungle” and doesn’t miss a note.
7:35 p.m.: Gates using the device to navigate video archives of keynotes past. Microsoft’s version of iTunes’ ‘Cover Flow.’ Messy.
7:33 p.m.: Gates uses the device to scan a photo of the Vegas skyline behind him. Clicks on the Venetian. The screen displays information for his keynote address. Pops another note indicating Ballmer’s playing nickel slots at another casino. Laughter.
7:31 p.m.: Bach brings Gates back onstage to discuss the future. … Gates takes the stage again with a handheld video recognition device. He points it at Bach and clicks. It recognizes Bach, displays his name onscreen, along with a note saying he owes Gates money.
7:29 p.m.: Fellow presenter uses Tellme to search out a movie theater, browse movie listings, purchase tickets for a movie and then send them to a friend. Pretty slick, especially given the size of the mobile advertising market.
7:27 p.m.: On to Windows Mobile and Microsoft’s Tellme service.
7:26 p.m.: Bach and fellow presenter now demoing “Sync”–an in-car voice-command technology that enables Zune owners to sync their Zunes to their car stereos and then navigate their music libraries with voice commands.
7:24 p.m.: Bach talks about Zune Social as a service that drives music transactions from discovery to purchase. Find a song you like on a friend’s page, click on it and purchase from Zune Marketplace. Again, haven’t we heard all this before?
7:22 p.m.: Listening habits are tracked via “cards.” Bands can create their own Zune Social pages as well. Essentially, MySpace for music.
7:20 p.m.: Zune Social apparently tracks your listening habits in real-time. It’s all about “people-powered music discovery.”
7:18 p.m.: Bach talking up the Zune now. … Demoing Zune Social.
7:17 p.m.: British Telecom is to begin selling Xbox 360s as Media-Room based set-top boxes. Price of relocation to UK not included with activation fee …
7:15 p.m.: In addition to this, MGM will also be adding its film library to Xbox Live. End result: Twice as many hours of on-demand programming as any cable provider out there.
7:14 p.m.: ABC and Disney will be bringing their programming to Xbox Live.
7:13 p.m.: Gates brings Robbie Bach onstage to talk about Xbox 360.
7:11 p.m.: Using Microsoft Silverlight technology, NBC and MSN will put some 3,000 hours of high-definition footage of the Beijing Olympics online. Wow: 3,000 hours of video. What a massive effort. First of its kind.
7:10 p.m.: Gates commenting on broadcast television: “It simply isn’t as fulfilling an experience as online video.”
Here comes another video segment. … Bob Costas pitching.
7:09 p.m.: Moving on to Silverlight. Gates says NBC has chosen Microsoft as its exclusive online video partner for the 2008 Olympics.
7:08 p.m.: He finishes up the design, lays his phone down on the screen and it automatically emails his design to friends for review.
7:07 p.m.: Gates, thankfully, back onstage for another demo. Wait, what’s this. Another Surface demo?! Didn’t we see this last year? Yes, we did–but given by Steve Ballmer, not Gates. Gates using Microsoft’s Surface multitouch computer to demo a snowboard-design service.
7:05 p.m.: The big achievement being touted here seems to be the connection between these services and the single log-on. As Dan Aykroyd might say: Isn’t that AMAZING?
7:04 p.m.: Windows Live Photo Gallery … in browser photo editing, sharing (via email or Flickr) and exporting to blog. Bor-ing. They would have been better off playing the farewell video again. That ‘Bib Pimpin’ segment was comedy gold.
7:02 p.m.: First up: Windows Live Calendar now with … wait for it … multiple calendar overlays (YAY! sigh…)
But wait, there’s more … Windows Live Events, an invitation/event organizing service. They really should have called it Windows Live eVites …)
7 p.m.: Gates brings Mika Krammer, a director of product management for Windows, onstage to demo some new features of Windows Live.
6:59 p.m.: And here comes the product line-up overview: Windows Vista, Windows Live, Windows Mobile ….
6:58 p.m.: A key building block of the second digital decade, the centerpiece building block will be. … (drum roll, please) … Microsoft Windows!
6:56 p.m.: “Devices will know our context and location,” Gates continues. There will be new modes of interaction and natural interfaces. “We’re very interested in simpler ways of navigating our technology.” If he were going to announce Microsoft Bob 2.0, now would be the perfect time to do it. Nope. Ah, well. “The software industry will build these new modes of interaction–touch, voice, gesture–into the software.”
6:55 p.m.: And now for a few predictions. “In the future Microsoft products and services will run on the desktop and in the cloud,” he says. Would that be the cloud with all the Google AdWords all over it? “And 3-D environments will exist for Web experiences, high-quality video and audio in a pervasive way.” Make way for Third Life …
“Devices and services will be connected.” As an example, Gates talks about photos automatically being uploaded to digital-memory application.
6:54 p.m.: Gates back onstage discussing the coming transition in leadership at Microsoft when he will step down from his day-to-day role as the company’s chairman. He says Microsoft is aligned well for success with Steve Ballmer, Ray Ozzie and others.
Moving on … “The second digital decade heralds the following: high definition experience is everywhere.”
6:52 p.m.: Video ends to thunderous applause. UPDATE: Here’s the video:

6:50 p.m.: Footage of Gates cleaning out desk, taking box of office supplies to his Ford Focus. Ford Focus–now that’s funny.
Cut to Peter Jennings: “Let’s face it, all of us here at NBC News will miss reporting on this brilliant, powerful, sexy man who just doesn’t like to pay more than $7 on a haircut.”
6:49 p.m.: Gates calls Jon Stewart and asks about a co-anchor job. Stewart turns him down.
Gates calls Hillary Clinton. She turns him down as a running mate, so he calls Obama:
Gates: It’s Bill.
Obama: Bill Shatner?
Gates: No, Bill!
Obama: Bill Clinton?
6:48 p.m.: Steven Spielberg reviews Gates’s audition reel (“X-Men” and “Matrix” re-enactments; Gates in Wolverine get-up, Gates and Ballmer in Matrix-style black trench coats) and denies him a part in his next film.
6:47 p.m.: Footage of Gates calling Bono in the middle of a U2 concert. Gates plays guitar riff on “Guitar Hero” for Bono. Bono tells him there’s no place for him in U2. Which is OK, I’m sure, since there’s certainly no place for Bono at Microsoft.
6:46 p.m.: My God … Gates in recording studio with Jay-Z… Holy … Gates singing “Big Pimpin’.” Wild laughter and applause. “It was great,” Jay-Z tells Gates, before turning to the camera and muttering, “not so much.”
6:45 p.m.: Various Microsoft execs talking about Gates. Clip of Gates in office playing with action figures: “Never doubt the power of software.” Laughter.
Quickly followed by Gates in gym working out with Matthew McConaughey, who doesn’t really strike you as a Windows user.
6:44 p.m.: “This is my last keynote. Come July, it will be the first time I won’t be working at Microsoft since I was 17.” And here comes the inevitable farewell video ….
6:42 p.m.: He mentions the progression of digital entertainment–music, movies, photos. The trend is clear: all media and entertainment will be software driven in the second digital decade. And in the third, it will all be driven by Microsoft Windows! Muahahahahaha. Kidding … Moving on … “I’ll soon step down as chairman.”
6:40 p.m.: Gates finally takes the stage. He recalls his first keynote in 1994, a time when Windows ’95 was first coming together. “It was the beginning of the first digital decade.” Ah yes, “The Digital Decade.”
6:39 p.m.: Here comes another silly video, this one set to “Believe in Magic,” featuring people from all walks of life extraordinarily happy to be using Microsoft products. They look like they’re all on Ecstasy. And it’s probably safe to say that nobody has ever looked like that while using a Microsoft product.
6:35 p.m.: Shapiro says Gates has given 10 CES keynotes, eight consecutively. He’s spoken at CES 11 times. Guess he must be the Guinness World Record holder. How ’bout that, huh?
6:33 p.m.: And here comes Gates. Wait–that’s not Gates. It’s Consumer Electronics Association President Gary Shapiro. OH RAPTURE! Disappointed applause. “In my opinion these are the best four days of the year,” says Shapiro. (Tell that to Steve Jobs next week.)
6:30 p.m.: Silly CES promo video… Correction: advertisement.
6:29 p.m.: Getting started right on time. Guess Jim Allchin and the Vista development team didn’t do Gates’s makeup this time around. Lights dim….
6:25 p.m.: In a few moments, Bill Gates, the Frank Sinatra of the Dat(a) Pack (Steve Jobs presumably in the Dean Martin role), will deliver his 11th Consumer Electronics Show keynote–and by many projections his last.
6:00 p.m.: The ballroom of the Venetian Resort Hotel Casino is pretty much packed, and like most things in Las Vegas it’s BIG. But it has to be the worst pre-keynote music EVER: from 1982 video game soundtrack to passed-out-after-the-rave techno to European disco to new wave. Really covering all the genres. At this rate, Bill Gates could take the stage to the theme from “The Dukes of Hazzard” or the “Annie” soundtrack.

Well, you can see him in action–and in fine form–in this video of the interview he did at D5 this year with Walt Mossberg.

Here, Ballmer talks about a variety of things, such as how to foster innovation at a big company, Windows Vista, immigration, the brownness of the Zune, even as Walt forces him to say the word “Google.”

He also shows off Microsoft’s Surface table, which debuted at the conference. (Also check out the very funny Surface spoof below the Ballmer chat.)

Here are the videos:

By way of background, D: All Things Digital, the annual tech and media conference Walt Mossberg and I host, has been sold out with a long wait list every year we have put it on.

That has meant only a few hundred people can see the interviews and also demos we do live onstage with some of the tech and media industry’s most interesting and important players and products.

The lineups have included Microsoft’s Bill Gates and Apple’s Steve Jobs, as well as Eric Schmidt of Google, IAC’s Barry Diller, Meg Whitman of eBay, Cisco’s John Chambers and many others.

And we’ve demoed stuff like the Treo when it first came out, as well as digital toilets, Wi-Fi phones and much more.

We usually post the photos and videos of the interviews and demos six or more months after they take place on a separate conference site. This year, our Digital Daily’s John Paczkowski liveblogged D5 and also posted video highlights from all of the sessions immediately on our newly launched site here.

Now, we are posting videos of every session of the 2007 conference here, in full, and we have made all our photo galleries, hosted by SmugMug and mostly shot by our fabulous Asa Mathat, public too. You can also access our videos via the site’s master player here.

Every day, I am going to highlight a different interview or demo from the conference.

Here is Ballmer:

The link to the joint interview on iTunes is here, in video and also as a podcast. This link will connect you to the Gates/Jobs interview page on iTunes, but only if you have downloaded the iTunes software. As I said, I will post links on Microsoft platforms for both downloading and streaming as soon as they are up, which should be soon.

Speaking of NPR, Walt and I did a very early morning interview on “Morning Edition” about the various gadgets that we had onstage, including Microsoft’s Surface coffee-table computer and the LiveScribe smart pen.

The Surface, of course, got a lot of play after it debuted at the conference, because it was another example of Microsoft getting more into the hardware business. And it was also significant, because the idea of computing using more mundane objects is inherently interesting for anyone with a passing interest in when we will start living like the Jetsons.

And the LiveScribe smart pen is another attempt to bridge that gap between the analog and digital worlds and even merge them. Looking over my piles of notes from two books I did, I realized I would never look at them again, and it would have been nice to make them searchable. Of course, the implications for important scribbling that needs quick finding, such as by a doctor during an exam, are pretty obvious.

With his appearance today at D: All Things Digital, Microsoft Corp. CEO Steve Ballmer will unveil Surface, the first in the company’s new category of surface-computing products that it has touted as “breaking down traditional barriers between people and technology.” Surface has a 30-inch display that can recognize physical objects. It allows, according to Microsoft, “hands-on, direct control of content such as photos, music and maps. … through natural gestures, touch and physical objects.” And it looks like it would make a hell of an air hockey table and perhaps even a Ms. Pacman game.

Surface can also recognize objects embedded with identification tags similar to bar codes. For instance, according to Microsoft, customers could set a wine glass on Surface and a restaurant could provide them with information about the wine, pictures of the vineyard it came from and suggested pairings with food on the menu. Surface, as Microsoft sums it up, brings an “opportunity to create technology that would bridge the physical and virtual worlds.”

Microsoft will begin rolling out the device–which some have likened to a sophisticated toy–in hotels (notably, Starwood Hotels and Resorts), T-Mobile stores, restaurants and entertainment venues (such as Harrah’s in Las Vegas) by the end of the year.

Find more D5 coverage at The Wall Street Journal.