Microsoft Corp. said Wednesday it will give computer makers more flexibility in configuring the Windows desktop. This move comes in response to the recent appellate ruling in the landmark antitrust case brought by the Justice Department and 19 states.

Computer makers will be able to alter the Start menu and make other changes, effective immediately. Microsoft said the new development will not affect the Oct. 25 launch date of Windows XP.

"We recognize that some provisions in our existing Windows licenses have been ruled improper by the court, so we are providing computer manufacturers with greater flexibility and we are doing this immediately so that computer manufacturers can take advantage of them in planning for the upcomingrelease of Windows XP," said Microsoft CEO Steve Ballmer.

Microsoft last month beat a lower court's mandated break-up, but the U.S. Court of Appeals for the District of Columbia affirmed that the software giant is a monopoly and abused its dominance to impede competition. The appellate court sent the case back to the lower court and another judge for a new remedy, which some court watchers say could affect Microsoft Windows XP.

"This announcement does not take the place of settlement discussions with the government parties or any future steps in the legal process; however, we wanted to take immediate steps in light of the court's ruling," Ballmer said. "We are hopeful that we can work with the government parties on the issues that remain after the court's ruling," he said.

The appeals court ruled that restrictive provisions in Microsoft's licenses with PC manufacturers impaired the distribution of third-party Web browsers.

PC manufacturers will now have the option to remove the Start menu entries and icons that provide users with access to Internet Explorer in current Windows operating systems and in the upcoming Windows XP. Microsoft will include Internet Explorer in the Add/Remove programs feature in Windows XP.

Microsoft had designed Windows XP to ship with a clean desktop and improved Start menu, but PC manufacturers will now have the option of continuing to place icons on the Windows desktop if they wish, the company said.

Consumers will be able to use the Add-Remove Programs feature in Windows XP to remove end-user access to the Internet Explorer components of the operating system. Although some of these changes will require development work and testing for Windows XP, Microsoft said will still be able to meet the date for worldwide launch on Oct. 25.

However, not everyone agreed that this was a big concession from Microsoft.

"This is meaningless because Microsoft has chosen to do this only after they possess an 87 percent market share and no effective competition remains because of its illegal conduct in the browser market," said Computer & Communications Industry Association President Ed Black, a frequent Microsoft critic.

Microsoft does not let OEMs or end users substitute non-Microsoft products for Microsoft products, he said. For example, Microsoft does not indicate whether they will allow OEMs or consumers to have a meaningful choice with other products, such as the Windows Media Player and Microsoft Instant Messenger.

Microsoft has indicated that these products, unrelated to the basic operations of a computer system, will be more tightly integrated into Windows XP than Internet Explorer was in past operating systems.

The announcement gave Microsoft stock a pop late in the trading day, up $1.83, or nearly 3 percent, to $66.31.

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