NEW YORK -- Now that Microsoft has the majority of Web surfers using its browser, will it have them using its instant messaging software as well?

The breakdown of talks between AOL and Microsoft on the issue of including AOL in the software giant's Windows XP operating system revolved around the issue of instant messaging (IM) software. It is the software that allows you to see your friends online and to send almost instant text messages to them. IM software is one of the most popular services offered by information portals -- sites that aggregate content from different sources -- such as MSN, Yahoo!, and AOL.

Microsoft is updating its IM software so that it integrates text, voice, and video chat more smoothly and seamlessly. Although in the past it offered updates to make its IM software, MSN Messenger, and videoconferencing software, Netmeeting, work together, the two never jelled into one easy-to-use interface. Microsoft will bundle the new integrated software and is calling it Windows Messaging. One window will control all of the messaging functions and theoretically make it a seamless experience for users.

Until only over a week ago, Microsoft was talking with AOL about including the latter's IM software in the newly redesigned Windows operating system's interface. Microsoft insisted on IM interoperability, or the ability for users of the two IMs to talk to each other -- something that has been a sore point for the two companies -- but AOL didn't budge. The halting of the two companies' negotiations means that Microsoft's IM software will be the default IM, not to mention video chat, application. Is it something you can live with?

We looked at a demo of Windows Messaging at PC Expo and found most of the improvements useful. The most noticeable change is, of course, the integrated interface of the instant messaging, video, and voice chat. Clicking on an MSN contact opens a large window divided into two vertical panes. The left one contains the interface for the IM client while the right shows the video conferencing software, as well as volume and microphone controls.

Windows Messaging comes with updates and improvements, most markedly on its videoconferencing module, which is based on Netmeeting. It boasts dynamic connection detection, which means that the quality of the video adjusts depending on the speed of your Internet connection. Microsoft has also added redundant packet sending, which also potentially reduces jumpiness and freezing of the video because there are "backup" packets of video data being sent.

Yahoo! recently updated its IM software to include video. AOL will most likely follow suit with its ultra-popular AOL Instant Messenger software. Will Microsoft's bundling of Windows Messaging in Windows XP spell doom for its competitors? The situation may be more complicated than that, because factors such as interoperability -- none of the major IMs allow users of different platforms to talk to each other -- may make it hard to wean current users from their preferred IM. At around 25 million users, AOL has powerful ammunition in the IM battle. Yahoo!, with its user base of millions, cannot be counted out, either. The fate of Windows Messaging will depend heavily on whether consumers and businesses adopt Windows XP. We can expect an all-out IM software war in upcoming months.