Service Pack 3 (SP3) for Windows XP is making progress, we hear. Release Candidate 1 is now available from MSDN and also from TechNet.

Windows XP SP3 is expected around about the same time as Windows Vista Service Pack 1. However, it remains true that the installed base is overwhelmingly Windows XP.

Strange then that an XP update is not going to encourage IT organizations to migrate to Vista. Why switch when XP runs well enough and maybe much better with SP3 onboard?

“A public RC will be available at a later date,” a Microsoft spokesperson said in a statement. “Windows XP SP3 is a rollup that includes all previously released updates for Windows XP, including security updates, out-of-band releases, and hotfixes. We are targeting 1H 2008 for the release of XP SP3 RTM, though our timing will always be based on customer feedback as a first priority.”

Pity those of us us who have computers running each version of Windows.

Windows Live is Microsoft’s big new idea for challenging the likes of Google in online software services.

Microsoft will now allow you to test out the new suite of Windows Live software at http://get.live.com/wl/all.

Windows Live makes it easy to store and manage your communications and information, and share what’s going on in your life with the people who mean the most to you. Many of you have already tried out new versions of our web services – Windows Live Hotmail, Windows Live Spaces, Windows Live SkyDrive beta, and the new Windows Live Home page beta.

[Now] we’re releasing beta versions of a new generation of Windows Live software designed for your Windows PC that makes it easier than ever to get connected to Windows Live or other services. This suite of software includes e-mail (Windows Live Mail), photo sharing (Windows Live Photo Gallery), a great publishing tool that lets you post directly to your blog (Windows Live Writer), parental controls (Windows Live OneCare Family Safety), a new version of Windows Live Messenger (8.5), and more.

CNET News.com has learned that Microsoft is aiming to ship its next version of Windows, codenamed version 7, within three years or so.

Microsoft discussed Windows 7 last Thursday at a conference for its field sales force in Orlando, according to sources close to the company.

Windows 7 will be under new orders to establish a more predictable release schedule, as suggested by Ray Ozzie following the multi-problematic Windows Vista rewrite and more than five years of development.

CNET comments, “Like Vista, Windows 7 will ship in consumer and business versions, and in 32-bit and 64-bit versions. The company also confirmed that it is considering a subscription model to complement Windows, but did not provide specifics or a time frame.”

Details were released, a representative said, “as part of our ongoing outreach to enterprise customers and partners, Microsoft has begun sharing plans for how they will continue to deliver value to businesses in the future…Software Assurance customers in particular. Microsoft is scoping Windows 7 development to a three-year time frame, and then the specific release date will ultimately be determined by meeting the quality bar.”

Windows 7 was previously codenamed, Windows Vienna.

There’s a useful preview of S. E. Slack’s new book : Breakthrough Windows Vista over on the Microsoft website.

The preview is called, 4 Ways to Use Windows Vista at Home.

I’ve been using Windows Vista for several months now, first testing it and then writing my book, Breakthrough Windows Vista. Now I’m running the final version on my computer. … Windows Vista can help you do a lot of things—new tools to help you organize, store, and edit your music and photographs are just two examples of how you can use the new operating system. In this article, though, we’ll discuss four ways that my family and I have already started to take advantage of Windows Vista at home.

The four ways are :

1. Stay in touch with Windows Sidebar
2. Find what you need with Instant Search
3. Get organized with the multi-person Windows Calendar
4. Keep an eye on your kids with Parental Controls.

Read the rest of the piece.