Now there's been a significant update to this case. After hearing from the people who brought the suit, a federal Judge has ruled that the suit warrants a federal trial. The suit claims that Microsoft used bait and switch tactics, and the fact it is heading for trial is surprising some. Nevertheless, Microsoft's arguments weren't enough to sway the Judge:
Microsoft has argued that its "Vista Capable" marketing campaign also included a "Vista Premium Ready" component that explained the differences between various versions of the OS, but Judge Pechman believes there's reason enough to let the suit go ahead.
To Microsoft's credit, they did do a 180 in terms of labeling, and will be revising the system in 2008. In the meantime, however, they'll be headed to the courts.