The final version of Microsoft's next operating system won't appear until later and in between there will be many interim releases to exterminate bugs and tweak performance, but Windows XP has already been unleashed on the world in the form of a widely distributed beta. Though it is still too early to tell how Windows XP will perform, Beta 2 provides a good glimpse at the design and features of this eagerly anticipated upgrade for both home and office.

Arguably Windows XP is Microsoft's most ambitious operating system release since Windows 95. That much is apparent from the moment you start up the system and see the new Welcome screen. The interface has been completely overhauled. Microsoft claims the new look, code-named "Luna," gives a "dual sense of rugged functionality and welcomed simplicity," which sounds more like the description of the interior of a new SUV than an operating system. But it is fair to say that the streamlined interface is less cluttered, far more attractive, and simpler to use.

The new operating system will be available in two versions: Windows XP Home Edition and Windows XP Professional. Although both look entirely new, beneath the hood they are based on the same Windows 2000 code, which offers better reliability than Windows Me or Windows 98 SE. At the same time, Microsoft claims Windows XP will offer far broader hardware and software support than Windows 2000, giving you the best of both worlds.

Although the code is new, many of the features in Windows XP will be familiar to those who have lots of experience with Windows 98 SE and Windows Me. Rather than adding new features, Microsoft has given a lot of thought to making existing ones easier to find and use by taking a more task-oriented approach. For example, all of the tools related to tasks such as digital photography, digital audio, and digital video editing are now grouped together. But that's not to say there are no new features--in fact, there are many enhancements in upgraded applications such as Internet Explorer 6 and Windows Media Player 8.

Windows XP: Guided tour

New Interface

The entirely new look of Windows XP is sure to grab lots of attention. The so-called Luna design--which you'll see popping up in other products from Microsoft--has big icons, rounded dialog boxes, and bright, colorful backgrounds. The desktop has fewer icons, the Start menu and System Tray show only the applications you use most frequently, and commonly-accessed dialog boxes such as the Control Panel have been simplified. The overall effect is a less cluttered and easier to use OS. But for those traditionalists who miss good old Windows, you can always revert to the "Classic" look.

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Digital Photography

Building upon Windows Me's enhanced support for imaging, Windows XP should become the top operating system on the market for working with digital cameras and scanners. An enhanced My Pictures folder simplifies the process of transferring, browsing through, and manipulating images, and Windows XP also offers the ability to send images straight to an online printing service.

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Digital Audio

Windows XP will include an updated Windows Media Player (version 8), and makes it easier-than-ever to burn your own CDs (you can bet the Recording Industry is really happy about that one).

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Digital Video--Windows Movie Maker

In Windows Me, Microsoft introduced a new digital video editing application called Windows Movie Maker. It's still there in Windows XP, but it's easier to use. When you attach a DV camcorder, Windows XP should automatically recognize it and launch Movie Maker.

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Internet Explorer 6

Windows XP includes a new version of the Internet Explorer browser. Like Windows XP itself, IE 6 has a streamlined look and lots of enhancements, mainly to the Explorer Bars. Related features in Windows XP include an improved home networking wizard (for sharing an Internet connection), a personal firewall for broadband users, and enhanced Web Publishing Wizard.

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Behind the scenes

Although Windows XP looks totally different, its foundation is Windows 2000, which offers better reliability than Windows Me or Windows 98 SE. Microsoft says the final version of Windows XP will offer the broadest support yet for other hardware and software. On top of all this, Microsoft has added some new services--and updated others--that are designed to make the user experience trouble-free.