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  Microsoft is undaunted by iPod's big lead
Time: 08:24 EST/13:24 GMT | News Source: E-Mail | Posted By: Brian Kvalheim

California Steve Jobs has promised that Apple Computer's iPod will become "the Walkman of the 21st century," but for that to happen, Jobs must do what he failed to do in the 1980s: prevail over his old nemesis, Bill Gates, who sees entertainment as Microsoft's next great frontier. A few weeks ago, Gates, Microsoft's chairman, paced around his office overlooking the rolling hills of suburban Seattle and recalled an advertisement Apple made 25 years ago. "When IBM came out with their PC, Apple ran an ad saying, 'Welcome,"' said Gates. "They haven't yet run the ad welcoming us into the music business. Apple should."

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