Microsoft Readies Windows Update

Microsoft Corp. said it has completed the latest version of its Windows operating system designed for home users, with improved multimedia features and automatic software updates.

Windows Millennium Edition, or Windows Me, is considered an incremental update to past versions, so it’s not expected to be a big seller. It’s set to go on sale Sept. 14 for $209, or $109 for users who are upgrading. New features include software for transferring images from digital cameras and for video editing.

Windows Me is the last Windows version based on the programming code in Microsoft’s Windows 95 and 98 programs. The next version planned, code-named Whistler, will be designed for both business and consumer computers and will be based on the Windows NT code used in Windows 2000, a business computer and server operating system released in February.

The new software also includes a copy of the company’s Internet Explorer software for viewing Web pages and a Windows Media Player for playing Internet audio and video files. The company would have to offer a version of Windows Me that allows both pieces of software to be easily removed if restrictions imposed by a federal judge take effect Sept. 5.