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Sam Hubinette drifts the Lamborghini LP670-4 SuperVeloce

10:25 PM Reporter: NEW TECHNOLOGY 0 Responses

Posted Yesterday, 12:51 PM by Ralph Hanson

Lamborghini's LP670-4 SV
The promo vid shows just how serious a machine the new SV really isNo one doubts the credibility of Lamborghini's most performance-focused vehicles, whether on the street, the track or environmentally conditioned multi-story garage. But knowing they are impressive and seeing how impressive they can be with a talented driver behind the wheel are two different things.

Enter Sam Hubinette - D1 drifter and general hooligan behind the wheel. Let him loos with 670hp in a super light, high-performance Lambo, and the result is sure to be a tire-smoking, sideways-sliding festival of speed. Just take a look at the video to see for yourself.

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Lamborghini lets new LP650-4 Roadster out of the stable

10:25 PM Reporter: NEW TECHNOLOGY 0 Responses

Posted Yesterday, 10:56 AM by Alex Kaufmann

Lamborghini LP650-4 Roadser leaked
The car will be a limited-edition model with just 50 units availableSpecial edition supercars are almost as plentiful as the base vehicles themselves these days, but hey, who's complaining? Lamborghini adds to the bounty today with the official unveiling of the Murcielago LP650-4 variant, a beefier, brawnier - and yes, even more aggressive - version of the standard Murci.

The car gets a 650hp (485kW) 6.5L V12 mill like that found in the Reventon. That amount of Raging Bull will get the AWD supercar to 62mph (100km/h) in just 3.4 seconds and a top speed of 205mph (330km/h). This upgraded power bump will be unique to the LP650-4 Roadster, according to Lamborghini.

The exterior is a special flat gray called ‘Grigio Telesto’ and is accented with bright orange elements on the side skirts and front lip, as well as in strategic locations inside the cabin. Dark ‘Hermera’ alloy wheels finish off the dramatic exterior. The brake calipers and engine cover are also finished in this same orange coloring found inside the car, while contrasting carbon-fiber is used to adorn the engine frame and disc brakes.

Inside, the car gets an asymmetric dashboard, acres of Alcantara with special black Alcantara Nera on the driver's side, and leather with Arancio Leonis stitching, and a few other unique touches.

Only 50 of the cars will be built, with a starting price expected to nudge up against $380,000 (€295,000).

Gallery: Lamborghini Murcielago LP650-4 Roadster

See Full Gallery

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New Audi A8 will be available with four-cylinder turboNew Audi A8 will be available with four-cylinder turbo

10:23 PM Reporter: NEW TECHNOLOGY 0 Responses

Posted Yesterday, 9:59 AM by Alex Kaufmann

2011 Audi A8
This new rendering reveals a sleek and aggressive new look for next-generation A8The current Audi A8 has been on sale since 2003 and since that time has only received a minor facelift to keep it fresh alongside the Mercedes Benz S-Class, Lexus LS and recently revealed BMW 7-series. The minor styling changes implemented during the recent facelift will have to soldier on for at least another year as the next-generation ‘D4’ A8, according to latest reports, is expected to arrive in the second half of next year as a 2011 model. The reports also claim a new entry-level model fitted with a turbocharged four-cylinder engine will be offered for the first time.

A prototype for the car has been spotted undergoing cold weather testing on a number of occasions, but always hidden beneath the current D3 body. Tell-tale signs that the prototype was the next-generation model included extended fender flares, a stretched wheelbase and wider track.

As the rendering suggests, the design of the new model will be an evolution of the current car. The aluminum spaceframe body will carry over, saving engineers more than 150kg compared with a conventional steel body. The car’s final curb weight is expected to range from between 3,630lb (1,650kg) and 4,180lb (1,900kg) depending on the model specification. The newest rendering diverges somewhat from earlier previews of the car with new slotted lower air intakes in the front air dam and redesigned LED-edged headlights.

Distinguishing features will be a large single-frame grille, LED daytime running lights and a coupe-like profile. In a previous interview, Audi's chief designer Stefan Sielaff explains: "The first generation was very dogmatic and product-design-like. With the second generation, the theme was 'elegance'—softer, flowing lines. The upcoming third generation will be stronger, sharper, and more precise."

Sielaff also revealed that the new A8 will be “the first of a new styling language at Audi”. In 2008 Audi released several teaser sketches of its future product lineup, including the new D4 A8.

Under the new sheet metal will be an extended version of the modular platform used in the A4, but expect to see more exotic materials such as aluminum and magnesium employed to help save further weight and improve dynamics. The base model will remain FWD but AWD variants will feature the latest quattro torque vectoring SportDifferential, which distributes drive individually between each axle and between the rear wheels for improved traction and stability. There will also be electronic control for the air-suspension, steering, pedal response and transmission systems.

The aforementioned four-cylinder engine will output around 230hp (172kW). The introduction of this engine will help Audi meet new emissions regulations planned for Europe, according to Volkswagen Group CEO Martin Winterkorn, who also revealed during his interview with AutoTelegraaf that the engine has been successfully tested in a number of A8 prototypes. This engine will almost certainly miss out on a U.S. launch but some smaller V6 options could be heading Stateside for the first time.

Filling out the rest of the engine range will be a 250hp (186kW) 3.0L V6 TDI, a 290hp (216kW) 3.0L V6 FSI, a 340hp (253kW) 4.2L V8 TDI, a 372hp (277kW) 4.2L V8 FSI and finally a 620hp (462kW) 5.0L V10 FSI reserved for the S8. A 12-cyclinder engine is also expected to be offered but it could be phased out due to low demand and the all-important emissions regulations.

2009 will be very busy for Audi as the carmaker is not only launching the new A8 but also the V10-powered version of the R8, the new TT-RS, the A5/S5 Cabrio, A5 Sportback, A4 Allroad, the S4, and a Q7 facelift.

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First Volvo S80L long-wheelbase sedans roll off the line in China

10:23 PM Reporter: NEW TECHNOLOGY 0 Responses

Posted Yesterday, 12:31 PM by Jeremy Weber

2009 Volvo S80L sedan
The long-wheelbase version of the S80 stretches an additional 5.5in (14cm) over the standard modelLast November Volvo announced it would release a long-wheelbase version of the S80 sedan for the Chinese market, and today that car has begun sales. There are no expectations the car will be available outside of China, following a trend of other carmakers in building unique limos for the country.

The S80L is based on the standard S80 sedan, but been locally tailored and specifically designed for the market in China, where it will also be assembled. It shares all the features with the shorter S80 but stretches an additional 14cm in length, with most of the extra space benefiting rear seat passengers. Five variants will be available, with various trims and engine packages to choose from.

Power of the top model comes from a 285hp (210kW) 3.0L T6 turbocharged inline six-cylinder, and is routed through an automatic gearbox to Volvo's AWD system. The combined drivetrain is enough to scoot the limo to 62mph (100km/h) in just 7.2 seconds - not bad for a fairly large car.

Volvo has enjoyed stable growth since entering China. It released its first locally built model, the S40, in 2006, and today it sells both the S40 and the flagship S80 in the Chinese market.

Audi recently released a similar sedan - a long-wheelbase version of the A4. Like the Volvo S80L, there are no plans to sell the Audi A4L LWB outside of China, demonstrating the importance of the Chinese market to global carmakers as well as the unique forces and demands within that market.

Gallery: Volvo S80L


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GM dealers not ordering new cars due to uncertain brand futures

10:22 PM Reporter: NEW TECHNOLOGY 0 Responses

Posted Yesterday, 11:18 AM by Ralph Hanson

In what is set to become a terrible domino effect, lagging demand for new cars and an uncertain future at Hummer, Saturn and Saab dealerships is leading to an inventory pile up. That, in turn, means dealers are ordering no new cars, driving General Motors' production schedule even further out of alignment.

Output in the first quarter was down 57% across GM's U.S. operations, or about 500,000 vehicles short of Q1 2008's output. That is a major decrease in new cars being produced, but it's still outpacing dealers' ability to move the cars off the lots, reports The Detroit News.

"If they tell us what they're going to do with the brand, we'll tell them when we're thinking about ordering new vehicles," said John Java, a Saturn dealership owner. "We're starving to death."

Overall, GM's inventory levels have fallen somewhat, to about 781,000 vehicles, a decline of about 20,000 since January. But despite dealer uncertainty and a still very large supply of inventory, GM is planning to actually increase production to 550,000 cars in the second quarter, though the figure is likely to be reduced as sales continue to stagnate.

Other carmakers are feeling the same pressures as GM, but in smaller magnitude. Ford, for example, has chopped its standing inventory by about 33%, while even Chrysler has shaved almost 20% of its stockpile of cars and trucks. By comparison, GM's decrease of 17% since 2008 is on the low side.

The only thing that can really turn the situation around, however, is increased sales. Government stimulus packages and carmaker incentives are doing their best to drum up demand, but in the end, it will come down to the American consumer to snap out of the slump.
The slow market is backing up the entire supply chain

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Porsche GT Coupe based on Panamera sedan

10:21 PM Reporter: NEW TECHNOLOGY 0 Responses

Posted Yesterday, 11:41 PM by Ralph Hanson

2011 Porsche GT Coupe (928 successor)
The car is almost certainly in production and should be on the market late next year as a 2011 modelBack in 2003, Porsche CEO Wendelin Wiedeking gave a speech where he hinted at the possibility of a new 2+2 coupe. In the years that followed, no other mention of such a vehicle was heard until the confirmation of development plans for the recently revealed Panamera sedan. But is the new Panamera four-door coupe the same car Wiedeking was first hinting at all those years ago?

The Panamera would easily lend itself to a proper two-door coupe body, and Porsche would be smart to spread development costs for its new front-engined rear-drive platform by launching more models based on it. The new car could also serve as a successor to the V8-powered 928 – something fans of the classic GT have long been longing for since its demise in the mid 1990s.

The new car would likely be called the GT Coupe but unlike the Panamera it would be an all-out performance model rather than a comfortable tourer. This computer generated shows what a two-door version of the Panamera would look like, revealing a stylish grand tourer with classic Porsche proportions.

Engine options would likely mirror those of the Panamera, which means a range of V8 powertrains as well as a new V6 unit. Power outputs would range from 300hp (225kW) in the base GT Coupe and top out at 500hp (368kW) in the range-topping Turbo model.

The car is almost certainly in production and should be on the market late next year as a 2011 model.

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Best Places to Retire 2008: Healthiest Places Edition

10:21 PM Reporter: NEW TECHNOLOGY 0 Responses
Posted September 15, 2008

Golf, boating, and nature are just a few of the things readers told us they are enjoying in retirement. For our second annual list of great places to retire, we asked readers to tell us about their healthy retirement haven. Here are 10 additional retirement gems worth a look.

Asheville, N.C. "I am 44 and do all of my training in the beautiful Blue Ridge Mountains, road biking on the Blue Ridge Parkway, running the scenic Mountains-to-Sea Trail, swimming in our clean national park lakes and rivers, and mountain biking the hundreds of miles of challenging trails of the North Carolina Arboretum." Todd Gothberg

Austin, Texas "I like the climate, culture, and nice people in Austin. We go to the opera, concerts, pools to swim, and live [near the] forest." Gabriel Cacuci

Fairhope, Ala. "There are a lot of ma-and-pa shops downtown but no fast food and no chains. There are an awful lot of beautiful flowers on every street corner in every season. And people will look me in the eye and say hello." Norm Wachtl

Huntsville, Ala. There is "a great four-season climate, no recession, lots of job openings, very little crime, a very high percentage of professional people, the latest and best in shopping and entertainment, and very good schools, all in a beautiful area in the Smoky Mountain foothills.... Many veterans who were stationed here and worked on the big Redstone Arsenal move back here for retirement." Mel Fisher

Pensacola, Fla. "In Pensacola, nearly everything revolves around water or beach recreation, and the beaches have sand like very fine, white sugar. I bought a 30-foot Hunter sailboat when I moved here and have a 15-foot speedboat for fishing.... Life is very laid back, easygoing, and the cost of living is much cheaper than we imagined it would be along the Gulf Coast. We were very surprised at all the festivals throughout the summer, from crawfish to local art, and all the fishing tournaments that seem to be every weekend. Two weekends ago, a shark fishing tournament was held, and the winner was over 900 pounds." Elaine Helen Pike

Providence, R.I. "Providence, R.I., is a neat place to live if you've got some money. Between Brown and the Rhode Island School of Design, there is plenty of intellectual opportunity. The water and scenery are gorgeous, with plenty of boating, sailing, and fishing. Boston is under an hour away. The Patriots are even closer—just 20 minutes. Amtrak scoots you into NYC if you want it." Barry Fain

Reno, Nev. "Thanks to the gaming industry, we get lots of big-name music and shows that a town this size otherwise wouldn't get." Gina Pogol

Seattle, Wash. "It has the Puget Sound on one side and Lake Washington on the other. We take the grandchildren to the zoo, go down to Alki Beach, and go up to Mount Rainier." Perry Frumkin

Tyler, Texas "There is a great civic theater, two different concert series each year, a four-year college, an excellent two-year college, lakes, and hunting. The two colleges both have plays and other entertainment." Jerry Bellis

Wilmington, Del. "The University of Delaware offers a good program at its Academy of Lifelong Learning.... Courses are given by volunteer members in a broad range of subjects, with frequent talks by University of Delaware professors, organized trips, and University of Delaware theater programs.... Wilmington also has the well-known Winterthur Museum and Country Estate.... In addition, Delaware does not have a sales tax." Paul Steyermark


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America's Best Healthy Places to Retire

10:20 PM Reporter: NEW TECHNOLOGY 0 Responses

U.S. News writers profile 10 healthy retirement spots around the country

Posted September 18, 2008

Think of it as retirement reinvented. As Americans live longer and in better health, all those old retirement clichés seem evermore removed from reality. Long walks on the beach? Hitting the links? Fiddling around the house? Nope, modern retirement can be so much more than that, from triathlons to deep-sea fishing. (OK, and maybe a little golf.)

Of course, to make the most of this next stage of life, you have to be healthy. And whether you practice yoga to heighten your mental acuteness and flexibility, soak up the panoramic views at the highest peak of a hiking trail, or get a rush when a gust of wind hits the sails, where you spend your later years can make all the difference.

To help you get started on the process of finding the healthiest spots to retire (assuming that such a thing is still possible despite the dismal stock market), U.S. News traveled the country and selected 10 editors' picks. These are places way ahead of the healthy living curve—they provide numerous places to exercise, promote strong social support, and encourage healthy lifestyle habits. And each has a little something extra, too.

Between Maine's forest-blanketed mountains and rugged coast lies Portland, with its seemingly endless hiking-and-biking trails and an island-studded Casco Bay, perfect for outdoor enthusiasts. Traverse through the desert and you'll find Green Valley, Ariz., which boasts 12 local recreation centers offering a litany of recreational activities, from woodworking shops and computer labs, to tennis, swimming, and bocce ball. For something a bit lighter, Walnut Creek, Calif., might be more your speed, where retirees come together through a love gardening and socializing. Those who beckon to a retirement of boating and world-class game fishing will probably fancy Punta Gorda, Fla.

But our list is just the beginning. Want to search for the retirement spot that best fits your needs? Just go to our 2008 version of our Best Places to Retire search tool. It allows you to sort through more than 2,000 locations throughout the United States according to the criteria that are most important to you, including climate, access to healthcare, cost of living, and recreational choices. You'll end up with a customized list of places with detailed information about each city or town. You can also find more editors' picks of the greenest, brainiest, and outdoorsiest places to retire. We've even got something for golf nuts and the most fanatical of football fans. Finally, we've included favorites submitted by readers, who describe what they find special about their retirement havens.

Now it's no secret that healthy folks tend to live longer, get fewer colds and flues, experience less aches and pains while aging, recover fast from an illness, and are happier mentally and emotionally. "The three prerequisites for well being in the later years are good health, financial security, and social integration," says Victor Marshall, director of the University of North Carolina at Chapel Hill Institute on Aging. "You want to move to a community that is set up to make it easier for people to get out and walk." Marshall recommends three, 45-minute periods of brisk walking a week. But other activities like yoga, gardening, biking, or even raking leaves can count toward that total.


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Laid Off in 2008: Start a Business in 2009

10:20 PM Reporter: NEW TECHNOLOGY 0 Responses

3 budding entrepreneurs share how they made the most of their recent job losses

Posted March 10, 2009

When Ashish Gadnis was laid off from his position as president of a Minnesota software development company, he managed to launch his new life before even leaving the parking lot. On the way to his car, he ran into the vice president of operations who had also been let go, and the two decided to start their own business.

The week Jason Wonacott lost his job as director of corporate communications for a Los Angeles online game publisher, he became his own boss and signed on his former employer as his first client.

When news of the Wall Street crash hit every U.S. household, Christine Marchuska felt the effects directly. Working in Manhattan at a major U.S. investment bank, Marchuska saw her layoff as a sign that it was time to become an entrepreneur.

"People look around at the economy, and what they thought were safe and secure positions are no longer safe or secure," says George Solomon, associate professor of management and director of the Center for Entrepreneurial Excellence at The George Washington University. Solomon saw the number of startups increase during the recessions of 1983 and 2001 and predicts they'll increase in the current economy as well.

So if you've just been laid off or think you're about to, get inspired by these entrepreneurs who turned their pink slips into a green light to start businesses.

Attitude is Key

No time is ever a good time for a layoff, but for Gadnis, it couldn't have been a worse time. With a new home and a new baby, losing his job was definitely not part of the plan. However, after receiving the news, Gadnis soon found a business partner, thought up a business name, Forward Hindsight Inc., and registered his new strategy and risk management consulting business all before the day was over.

That was in 2004. Today, Forward Hindsight boasts an impressive list of clients, including Northwest Airlines, and has even expanded into the Middle East and India. In 2008, the Minneapolis-based company made about $3 million in sales, and Gadnis aims to increase that number in the next couple of years.

With extensive experience as former director at United Health Group and head of software development for an e-learning company, Gadnis was equipped with contacts and know-how, but his attitude was the key to getting back on his feet so quickly. Instead of feeling frustrated or incompetent, Gadnis kept his ego in check. "In the past four years, I've learned that in addition to a zero basis for fear, you have to have a zero basis for ego," says Gadnis, 39. "If you have no ego, you can get through any difficult moments." Now, with a successful business under way, Gadnis has set his sights on a much bigger goal: He wants to be working to solve world hunger full time by the time he's 45.

Exit Strategy

When Wonacott lost his job in April 2007, he was prepared. He had caught wind of possible cuts and, having been through a layoff before, wanted to be in the driver's seat this time. He prepared a proposal and, when the fateful day arrived, approached the company's CEO and vice president of marketing with a deal they couldn't refuse: He would continue doing their PR work but wouldn't require the salary or benefits of an employee. They agreed and not only became his first client, but also leveraged their networks to win him two other clients. "I have never professionally been so scared," admits Wonacott, 36, who, thanks to his courage and a good severance package, was able to walk away from the layoff with the beginning phases of Wonacott Communications LLC, a full-service PR and integrated communications practice in Los Angeles.

After holding several PR positions, Wonacott knew the industry well, but wasn't so familiar with owning a business. "Going into a position where you don't have someone else paying you every two weeks, you have to change the way you think," he says. He had also long relied on having the assistance of IT specialists, HR experts and office managers at his fingertips, but when he went out on his own, those responsibilities fell on his shoulders. To cope, he turned to his network, where he found a friend of a friend who could offer tech support when needed. He also found his business accountant and attorney and got business leads for the first six months.


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NASA eyes weekend Discovery launch

10:19 PM Reporter: NEW TECHNOLOGY 0 Responses

ISS bound (eventually)

NASA's next shot at launching space shuttle Discovery will be on Sunday, following repairs to the spacecraft's troublesome plumbing that grounded this week's attempt.

Workers at the Kennedy Space Center in Florida are fixing a leaky Ground Umbilical Carrier Plate (GUCP) interface, which connects a hydrogen gas vent line to Discovery's external fuel tank. The 7-inch quick disconnect [pictured below] will be replaced, retested and checked for leaks before a 7:43pm launch attempt on Sunday.

Image courtesy United Space Alliance

Liftoff has already been delayed four times due to concerns over the shuttle's hydrogen flow control valves — which had been damaged on Endeavour's STS-126 mission last November. NASA said Wednesday's troubles occurred outside the shuttle and are unrelated.

NASA said the weather forecast calls for an 80 per cent chance of acceptable conditions at launch time. The space agency expects ideal launch conditions to deteriorate for potential Monday and Tuesday attempts.

When the Discovery does launch, members of mission STS-119 will deliver a final set of solar arrays to the International Space Station to pump extra juice into the orbiting outpost for when it expands its permanent crew from three to six.

The shuttle will also take home Expedition 18 Flight Engineer Sandra Magnus, who's been staffing the ISS since November 2008. ®


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NASA Space Junk Audio Tapes Released

10:18 PM Reporter: NEW TECHNOLOGY 0 Responses
Mission control tells the space station astronauts tell they would have had only 10 minutes of reserves left if the debris had hit the station.


Astronauts aboard the International Space Station hunkered down this week while waiting to find out if a piece of space junk would hit their temporary abode at about 20,000 mph.

The crew took cover in the Soyuz TMA-13 capsule briefly Thursday morning, while waiting for the object to pass after ground control alerted them that it could hit the station. NASA estimated the piece of space junk to be about 5 inches in diameter, according to a brief online report about the incident.

"With the uncertainty of it, we are wanting to take a conservative approach," a NASA mission control employee at Johnson Space Center in Houston explained to those aboard the space station. "It's a low probability of hit. However, the object is rather large, from what we can track, and if it does happen to hit the ISS, we're talking only about a 10-minute reserve time."

She advised the crew to prepare to close the U.S. segment and hatches.

Crew members asked her to clarify whether they were supposed to board the Soyuz "right now." They were and they did. Within minutes, the crew was alerted that the object had passed.

Then ISS Cmdr. Michael Fincke urged ground crews to do what they could to ensure that the day's activities, including ham radio transmissions to schools, could proceed.

Moments after that, Russian ground control indicated the object had passed, and their U.S. counterparts confirmed the information.

"We are all very happy that [it] has passed with no impact," the NASA employee said. "That's great news."

Earlier this week, NASA announced that people on Earth could now watch the ISS through video showing the outside during some times of day. The live cam was not available as the astronauts hunkered down, but an audio recording of the communications between the astronauts and ground crews is available on NASA's Web site.

It's unclear exactly how close the debris came. If it had hit, the ISS would likely have been crippled. It's likely the crew would have tried to undock from the station and re-enter the Earth's atmosphere aboard the Soyuz.


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Bargain apps and zombies attack - iPhone apps of the week

10:17 PM Reporter: NEW TECHNOLOGY 0 Responses
by Jason Parker
iPhone(Credit: CNET)

It's happened to just about everyone who has bought an iPhone app at the iTunes Store: At some point the app you paid $7.99 for goes on sale for $1.99--sometimes it's even free the next day. I've personally had this happen to me many times, but only because it's part of the job to get apps when they're hot off the presses. Fortunately, as part of the job, I don't have to (personally) pay for the apps I review. Most everyone else isn't so lucky.

Fortunately, an app made for bargain hunters that had been sitting in Apple's queue for several weeks (deemed by the development team a "pocket rejection") finally made it to the iTunes Store. Nobody knows why Apple was holding out, but now that it's here I think most people will want to download it.

This week's apps include an iPhone app bargain finder program and a zombie-themed tower defense strategy game.

BargainBin

Sort through specific categories or just find the best bargains for all apps

(Credit: CNET)

BargainBin helps you save money on iPhone apps by automatically finding deals on apps as they happen. A lot of iPhone app developers have recognized the advantage of selling their apps for a lower price either initially, or to generate interest in their app for a short time at the iTunes Store. BargainBin scans the iTunes store for these changes in price, helping you find apps that you might have thought were previously too expensive. You can sort by category and then use the buttons at the top of the interface to find bargain prices or apps that have since become free. Nobody wants to spend top dollar for apps if they have a choice and this app is the perfect way to find deals at the iTunes Store.

Zombie Attack Free

As you gain levels, more zombies slowly come at you as you try to defend your simple shack

(Credit: CNET)

Zombie Attack Free is the free version of the full tower defense strategy game, Zombie Attack. Like other real-time strategy games, you need to fight off a horde of baddies with strategically deployed gun turrets. But in Zombie Attack, an endless stream of zombies (punctuated by progressively more difficult levels) rush across a field, trying to reach and attack your humble shack, as you run around on the field (by tilting your device) placing and upgrading gun emplacements. You earn money for every zombie you drop, and the game ends when the zombies destroy your shack. The paid version (gives you several guns to choose from including flamethrowers, sawblades, and more. If you can't get enough of tower defense games (like me) you will like the unique strategy of this game.

What's your favorite new iPhone app? Have you found any bargain basement prices in BargainBin I should know about? What's your favorite tower defense game? Let me know in the comments!


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Judge will rule on Merrill bonus names next week

10:15 PM Reporter: NEW TECHNOLOGY 0 Responses
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By Grant McCool

NEW YORK (Reuters) - A judge will rule next week on whether the names of 200 top bonus earners at Merrill Lynch & Co should be kept confidential.

New York State Supreme Court Justice Bernard Fried said at the end of a hearing on Friday that he would issue a ruling "within the next week" in a legal tussle between New York Attorney General Andrew Cuomo and Bank of America Corp, which bought Merrill on January 1.

A lawyer for Merrill and Bank of America told the judge that the names were a trade secret and should not be made public, citing concerns over competition, privacy and security of those personnel.

"There are only five people in the company who would know all 200 names," lawyer Evan Davis said.

"We're going to lose people, that is the competitive harm, that's what makes it a trade secret."

But a senior deputy of Cuomo, who has pressed for months for details on the billions of dollars paid to executives at banks given U.S. government bailout money, said Cuomo's office had the authority to make the names and bonus details public.

"It's not like a formula of ice cream or a business plan," Eric Corngold, executive deputy attorney general of economic justice, told the judge.

Corngold said it was the nature of investigations to "reveal information people may not want out on the street, but this is not a reason for the courts to handcuff the attorney general."

Cuomo's office is investigating whether $3.6 billion in bonuses paid to Merrill employees broke securities laws, and whether Bank of America should have disclosed more about Merrill's troubled condition sooner.

Merrill awarded bonuses just days before Bank of America completed its acquisition of the Wall Street investment bank and brokerage. Merrill lost $27.6 billion in 2008.

Bank of America has received $45 billion from the government's Troubled Asset Relief Program, including $20 billion in a January bailout that included a government agreement to share in losses on some toxic assets.

A Bank of America spokesman has said the Charlotte, North Carolina-based bank has continually offered to provide Cuomo with information on Merrill bonuses "subject to reasonable confidentiality."

Former Merrill Chief Executive John Thain and Bank of America CEO Kenneth Lewis have testified under oath to lawyers at the attorney general's office on executive pay.

The case is Cuomo v. Thain, New York State Supreme Court (Manhattan), No. 400381/2009.

(Reporting by Grant McCool; editing by John Wallace)


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BofA CEO shouldn't be chairman, big investor says

10:14 PM Reporter: NEW TECHNOLOGY 0 Responses
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By Elinor Comlay

NEW YORK (Reuters) - A longtime banking executive who sold his company to a Bank of America Corp (BAC.N) predecessor is calling on other shareholders to oust the embattled Kenneth Lewis as chairman of the largest U.S. bank.

Jerry Finger said Lewis, who is also Bank of America's chief executive, took too many risks in acquiring troubled investment bank Merrill Lynch & Co.

Finger is asking the U.S. Securities and Exchange Commission for permission to run a "vote no" campaign without formally soliciting other shareholders by proxy.

"This group of directors needs to be aware of their duty to shareholders and needs to fulfill that," said Jonathan Finger, who with his father co-manages Finger Interests, an investment firm in Houston that primarily manages the family's capital.

Shareholders have increasingly been voicing concern about Lewis' position following the troubled acquisition of Merrill and Bank of America's falling share price. The shares are down almost 60 percent year-to-date.

The Fingers' campaign also calls for shareholders to reject the reelection of lead outside director O. Temple Sloan and Jackie Ward, chairwoman of the bank's asset-quality committee.

Jonathan Finger said his family has had initial discussions with some of the bank's large institutional shareholders.

"They are certainly open to hearing our side of the story," he said.

The Finger family controls about 1.5 million Bank of America shares.

"There's going to be a very strong outpouring of support for the (Fingers') campaign," said Richard Ferlauto, director of corporate governance and pension investment for the American Federation of State, County and Municipal Employees.

"If the board were to move before the annual meeting to create an independent chair position, I think that would mollify at least for the time being these investors who are right now calling for Lewis' head."

Jerry Finger founded Houston commercial bank Charter Bancshares, which merged with NationsBank in 1996. NationsBank later acquired BankAmerica Corp to become Bank of America in 1998.

Separately, through Finger Interests Number One, the Fingers have filed a lawsuit in New York charging Bank of America executives and board members with concealing information by failing to disclose losses at Merrill Lynch ahead of a shareholder vote on December 5.

"We have met with (Jerry) Finger several times to hear his concerns and have attempted to address them," a Bank of America spokesman said.

Bank of America shareholders have proposed voting on eight issues at the April 29 annual meeting on subjects including executive pay, the election of board directors, credit card lending practices and whether to replace Lewis as chairman with an independent director.

(Reporting by Elinor Comlay; Editing by Lisa Von Ahn and Andre Grenon)


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Washington Post to cut business section

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By Robert MacMillan

NEW YORK (Reuters) - The Washington Post will stop publishing a business section six days out of the week and move business news to the front section of the paper at a time when finance stories dominate world headlines.

The decision, which the Post's editors explained in a memo obtained by Reuters, means that the paper will save money on newsprint when newspaper advertising revenue is plunging.

The cost-cutting would allow the paper to keep providing readers with what they say they want, according to the memo signed by Executive Editor Marcus Brauchli and other editors.

"We remain absolutely committed to the strongest, in-depth and authoritative coverage of business locally, economics and economic-policy nationally, and the hugely important intersection of government, politics and money," the memo said.

"The A section gets more readers than the Business section, so we'll have more readers for our business coverage. We aren't changing the size of the staff," Brauchli, former top editor of The Wall Street Journal, the preeminent U.S. business newspaper, told Reuters.

Post media reporter Howard Kurtz, writing on the paper's website earlier on Friday, said Brauchli did not dispute the fact that the loss of a stand-alone section would mean less prominence for many business stories.

The decision to cut the section comes as the financial crisis puts an ever brighter spotlight on how well or poorly the federal government, traditionally The Washington Post's strongest turf, regulated financial institutions before the financial crisis.

The Post will stop running full listings of daily stock-price movements on Tuesdays through Saturdays. Instead, it will offer a half-page package of statistics and graphics showing how major national and local stocks fared.

The paper will run an enhanced Sunday Business section that will include new financial tables and graphics along with more personal finance stories aimed at helping people and small businesses survive the downturn.

In the Style section, the Post will move some comics online. It also will end one of its crossword puzzles and its weekly chess and poker columns.

Many U.S. papers have cut their stock listings and business sections to save money as ad revenue falls and they buy out or lay off staff to reduce expenses.

The Post has cut other sections since Brauchli joined the paper last year, including the Sunday Source section and Book World. it also has combined its Sunday Arts and Styles sections.

Washington Post print advertising revenue fell 17 percent last year to $410.4 million, mostly because of declining classified ad revenue. Daily circulation at the paper fell 2.6 percent in 2008.

The Post has a strong line-up of business news reporters, and has written many large, investigative stories about companies involved in the ongoing financial crisis, including a three-part series on the downfall of insurer American International Group.

Berkshire Hathaway owns about a fifth of the company's Class B shares, and Chairman Warren Buffett sits on the board. Continued...


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U.S. autos task force hires bankruptcy lawyer

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By Emily Chasan

NEW YORK (Reuters) - President Barack Obama's task force on the auto industry has hired a bankruptcy lawyer to advise it on its options.

The task force hired Matthew Feldman, a partner in the business reorganization and restructuring department at New York law firm Willkie Farr & Gallagher LLP, the law firm said in a news release on Friday.

Feldman will be advising U.S. Treasury Secretary Timothy Geithner and Lawrence Summers, the director of the National Economic Council, on reorganization efforts by auto manufacturers and suppliers, Willkie said in a statement.

He will leave the firm by the end of March to start his position in Washington, according to Willkie.

A U.S. Treasury official also confirmed Feldman's hiring, adding this would not change the task force's approach in restructuring the auto industry. He will work to help analyze restructuring options with the rest of the teams, the official said.

The U.S. government also has been working with bankruptcy and restructuring lawyers at law firms Cadwalader, Wickersham & Taft LLP and Sonnenschein, Nath & Rosenthal, as well as turnaround specialists at investment bank Rothschild. Those advisors have been working with officials on the taxpayer- backed restructuring of General Motors Corp and Chrysler LLC.

General Motors shares fell almost 12 percent in after hours electronic trading after the news.

Feldman has worked on both in court and out of court restructurings, according to his firm's website. He also represented investors that bid for assets in the Chapter 11 restructuring of auto parts supplier Dana Holding Corp, the site showed.

Members of the administration's task force toured GM and Chrysler facilities in the Detroit area earlier this week, checking new technology and meeting with company executives.

The panel faces a March 31 deadline to determine whether GM and Chrysler can be commercially viable and deserving of more government aid. The two received a $17.4 billion bailout in December and have asked for an additional $22 billion.

In after hours electronic trading General Motors shares fell to $2.40, down from a closing price of $2.72 on the New York Stock Exchange on Friday.

(Reporting by Emily Chasan; Additional reporting by David Lawder in Washington; Editing by Tim Dobbyn and Andre Grenon)


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Ford CEO gets option to buy 5 million shares

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DETROIT (Reuters) - Ford Motor Co (F.N) has granted Chief Executive Alan Mulally options to buy 5 million shares in the automaker under a long-term incentive plan, it said in a U.S. regulatory filing on Friday.

Ford, which posted a record $14.7 billion net loss in 2008, disclosed the options grants to Mulally and other executives that were made on Wednesday, according to U.S. Securities and Exchange Commission filings.

"It's part of our long-term incentive plan to tie compensation to the performance of the company and the performance of the shares for investors," Ford spokesman Mark Truby said of the option award.

The options for Mulally carried a strike price of $1.96. The stock closed on Friday at $2.19.

Mulally may exercise one-third of the options a year from now, two-thirds after two years and all of them by March 2012. The options expire in March 2019.

Mulally also received 136,005 shares of restricted stock under another long-term incentive plan based on Ford's 2008 performance. Because the automaker failed to meet company targets last year, the award was 15 percent of the maximum.

Mulally has agreed to take a 30 percent salary cut for 2009 and 2010. Performance bonuses for 2009, which would be paid next March, have been eliminated for Mulally, other senior executives and global salaried employees.

The automaker previously eliminated a performance bonus for 2008 that would have been paid this month, merit pay increases for salaried workers in North America and has made other cuts.

Ford has said it believes it has the liquidity to continue a restructuring through the global recession without seeking emergency U.S. government loans as long as industry sales stay above 9.2 million units.

Still, the automaker has said it does not expect its results to return to break-even or a small profit until 2011 amid an industry where U.S. auto sales have fallen to the lowest monthly adjusted levels in 27 years.

Ford's rivals, General Motors Corp (GM.N) and Chrysler LLC, have been kept in operation since the start of the year with emergency loans from the U.S. Treasury.

(Reporting by David Bailey, editing by Leslie Gevirtz)


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Finance help wanted for Citigroup board

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By Jonathan Stempel - Analysis

NEW YORK (Reuters) - Citigroup Inc may benefit from a push to install more directors with financial industry experience after a board heavy with Fortune 500 chief executives oversaw a disastrous push into risky debt.

Diversifying the board, whose chairman Richard Parsons is the only outside director with top-level financial services background, is likely to ensure greater oversight of the risks the bank takes and limit the potential for losses to mushroom further following a $37.5 billion deficit over five quarters.

The attempt to add financial experience to a board stacked with current and former chiefs of nonfinancial companies, including Alcoa Inc, AT&T Inc, Chevron Corp, Dow Chemical Co and Xerox Corp follows last month's U.S. government agreement to expand the federal stake in the third-largest U.S. bank to as much as 36 percent.

"Those sound like strong names," said Ralph Ward, publisher of the Boardroom Insider and a corporate governance specialist. "The government and the people watching Citigroup most closely are interested in whether you know your stuff and have competence in turnaround situations."

A shift could also presage a wider move among companies toward boards that seek out industry expertise, as well as heavyweight name recognition.

"This could set a trend: the idea that your being a Fortune 500 CEO makes you a great generalist for other companies' boards may be a thing of a past," Ward said. "We're moving into an age of specialists."

GOOD, STRONG SIGNAL

Citigroup wants to nominate Jerry Grundhofer, once chief executive of regional bank US Bancorp, to its board, a person close to Grundhofer said. The person did not want to be identified because of the sensitivity of the situation.

The Wall Street Journal, which earlier reported the appointment, said Citigroup also plans to nominate three other financial experts: former Bank of Hawaii Corp Chief Executive Michael O'Neill; William Thompson, a former co-head of bond manager Pacific Investment Management Co; and a specialist in risk management, perhaps a finance professor.

Citigroup has gotten $45 billion of taxpayer money in the last six months, but shares of the New York-based lender languish below $2 each.

"It seems that Citigroup is sending a very good, strong and appropriate signal to the government and the market that it is taking its problems very seriously," said Lawrence Mitchell, a George Washington University law professor and author of "The Speculation Economy: How Finance Triumphed Over Industry."

The bank is expected to name at least six new independent directors as part of a February government bailout.

It is replacing two directors who have reached retirement age and three inside directors. The latter include former U.S. Treasury Secretary Robert Rubin, who once led the bank's now disbanded executive committee.

Citigroup and US Bancorp did not return requests for comment. O'Neill could not be reached. Pimco spokesman Mark Porterfield declined to comment.

In 2007, Citigroup had considered Grundhofer and O'Neill for the chief executive job, according to a person familiar with the matter, who sought anonymity because talks were confidential. Vikram Pandit, a former Morgan Stanley executive, got the job and remains at the helm. Continued...


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What I’m Looking For at Austin’s Tech Fest

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South by Southwest Interactive, the annual festival that lures the tech-savvy set away from the warm glow of their computers to Austin, Tex., kicks off Friday. I’ll be joining the masses who turn out to see the newest and coolest Web innovations and the latest clickable sensations, reporting on what I see along the way.

SXSW 2009

Last year, as a newbie to the rituals of the digerati, I thought that the event resembled spring break for bloggers — at one party, guests playfully blew into Breathalyzers. And a calamitous keynote interview between Facebook chief executive Mark Zuckerberg and journalist Sarah Lacy gave everyone something to Twitter home about.

But this year, organizers are hoping to make the conference — part of the bigger South by Southwest festival that includes film and music — more than just a string of wild, barbecue-fueled parties.

For starters, organizers have taken note of the makeshift, digital tent city erected around the infrastructure of the conference and made some of those third-party innovations official parts of the gathering. In short, “we formalized what had been happening in the hallways all along,” said Shawn O’Keefe, one of the event producers.

For example, during 2008’s event, graphic designer Mike Rohde drew visual guides to several of the panels and events that he nicknamed Sketchnotes. After the conference he uploaded his hand-drawn infographics to Flickr, where they were widely circulated and linked to.

South by Southwest organizers commissioned Mr. Rohde to create another set for 2009, and they’ll be made available for free after the event.

Organizers also borrowed a page from one of 2008’s most prized applications — a free, unofficial scheduling tool called Sched.org, built by a pair of developers in a single day. This year, SXSW rolled out its own version of a custom networking and schedule-building tool called MySXSW. It lets attendees keep track of the week’s presentations and happy hours via the Web and mobile browsers, as well as send messages to one another.

Many of the 200-plus panels scheduled for the five-day event have how-to or do-it-yourself format, emphasizing practical skills in an economy where they are suddenly more valuable. For example, there are in-depth lessons on Adobe software, video journalism tutorials and tips for building online communities. The fun stuff is still there, of course, and several panels look promising: Sex lives of the microfamous, drilling down into the anatomy of online scandals and sustainable food 2.0.

The recession doesn’t seem to have dampened the spirit of the event or its attendance. South by Southwest is on track to exceed last year’s 9,000 people by at least 30 percent, said Mr. O’Keefe.

Ever since Twitter caught the attention of the crowd at South by Southwest in 2007, start-ups have flocked to the conference hoping to dazzle its influential mixture of bloggers, social media mavens and early adopters.

This year, organizers teamed up with Microsoft BizSpark to create the Accelerator, an event hosted by the venture capitalist and entrepreneur Guy Kawasaki, where more than 20 start-ups will demonstrate their products before a panel of judges.

As part of our coverage, I’ll be blogging on Bits, Twittering dispatches from the scene, ducking my head into keynotes by the statistical whiz Nate Silver, playing a round or two of SXSW Bingo and following start-ups like Foursquare that are hoping to break through the noise.

Feel free to share your tips and impressions through blog comments, e-mail and tweets @jennydeluxe.

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Big Blue Wades Into the Water

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Smart BayMarine Institute of Ireland A buoy in Galway Bay, Ireland, uses sensors in the ocean to collect data on water quality and sea conditions. The SmartBay system, developed by I.B.M. and the Marine Institute of Ireland, provides real-time information to scientists, commercial fishermen, environmental monitoring agencies and the general public.

Give I.B.M. credit for technological ambition and a willingness to tackle big problems.

I.B.M. is presenting a new bundle of services and research offerings at the World Water Forum in Istanbul on Monday. The package, grandly called Strategic Water Management Solutions, is the most recent entry in I.B.M.’s so-called smart planet initiative. The “smart planet” label is attached to all of the company’s efforts to put more information technology and analytics into fields from health care to energy.

No one would question that water conservation and management is a big, worthy issue worldwide. Whether I.B.M. can make money in water is another question. It is a field freighted with all sorts of thorny policy and economic issues. Depending on one’s perspective, water is a human right, a public utility or a vast new marketplace ready to take off. Water could be all three of those things, though the ideological constituencies in each camp rarely view it that way.

I.B.M. is betting that water management is a market waiting to happen. Sharon Nunes, vice president of what I.B.M. calls Big Green Innovations, points to government plans for water-related projects as part of infrastructure spending in economic recovery plans around the world. In the United States, she said, some $16 billion of funds for water-related projects are included in the economic stimulus package, while China intends to spend an estimated $51 billion on environmental programs in the next few years, including water projects.


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A Call to Legislate Internet Privacy

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The debate on Internet privacy has begun in Congress.

Rick BoucherPhil McCarten/Reuters
Representative Rick Boucher

I had a chance to sit down recently with Representative Rick Boucher, the long-serving Virginia Democrat, who has just replaced Ed Markey, the Democrat from Massachusetts, as the chairman of the House Subcommittee looking after telecommunications, technology and the Internet. Mr. Boucher is widely regarded as one of the most technologically savvy members of Congress.

As he ticked off his top priorities for his panel, most involved the pressing demands of telecommunications regulation. There is a law governing how local TV stations are carried on satellite broadcasters that needs to be renewed. There is the Universal Service Fund, which takes money from most telephone customers to pay for rural service to be improved. And there is the conversion to digital television and the investments in rural broadband to be supervised.

But high on his list is a topic that is very much under his discretion: passing a bill to regulate the privacy of Internet users.

“Internet users should be able to know what information is collected about them and have the opportunity to opt out,” he said.

While he hasn’t written the bill yet, Mr. Boucher said that he, working with Representative Cliff Stearns, the Florida Republican who is the ranking minority member on the subcommittee, wants to require Web sites to disclose how they collect and use data, and give users the option to opt out of any data collection. That’s not a big change from what happens now, at least on most big sites.

But in what could be a big change from current practice, Mr. Boucher wants sites to get explicit permission from users — an “opt in” — if they are going to share information with other companies.

“I think that strikes the right balance,” he said. “Web site operators are very concerned that if they have an opt-in regime for the internal marketing of the Web site themselves it would be very disruptive. The default position of most Internet users will be not to check any boxes at all. It is a very different matter if the site takes the information and sells it to gain revenue.”

I spoke to Mr. Boucher on the day that Google announced its new plan to track data about customers for advertising. And I asked him about such behavioral targeting, which presents an ad based on what you did on other sites.

“That would clearly need an opt in,” he said.

If that’s how a final law is written, it would significantly disrupt a fair number of advertising businesses. And lobbyists for Internet companies and trade groups told me they are preparing to “educate” Mr. Boucher on the benefits of targeted ads.

Mr. Boucher told me that he is convinced that privacy legislation will actually be good for Internet companies.

“Our goal is to enhance user confidence in the online experience,” he said. “Web sites will understand that enhancing confidence will improve their business.”

Some companies, led by Microsoft, have called for comprehensive privacy laws, as Europe has. Mr. Boucher said he just wants to write rules for the Internet. Certain other areas, such as medical and financial records, already have existing privacy laws.

Of course, there is a very long way to go between a congressman saying he will introduce a bill and the President signing it into law. And other key House and Senate leaders who would be involved in any privacy legislation have yet to articulate clear points of view on the subject. Nor has the Obama administration said anything publicly whether it wants any new privacy laws.

But there are certainly signs that the topic is of interest. The stimulus bill attached tough new privacy controls to the electronic medical records provisions. And Jon Leibowitz, whom the president appointed to head the Federal Trade Commission, is a long-time privacy advocate.

But even if a privacy bill doesn’t make it all the way to the president’s desk, the fact the subject is being considered is already encouraging Internet companies and trade groups to come up with tighter standards for protecting data used for advertising in the hope that they can persuade Congress that a new law isn’t needed.

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How to Avoid Liquefying Your Jellyfish

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Jellyfish are 95 percent water. They have no bones. They drift along at the mercy of the current. So guess what happens when you put them into a traditional fish tank?

“They’re going to get sucked up into the filter and liquefied,” said Alex Andon, the founder of a start-up company called Jellyfish Art.

Alex AndonJim Wilson/The New York Times Alex Andon, checking jellyfish food in his San Francisco apartment.

Mr. Andon’s company makes specialized aquariums that allow people to keep jellyfish in tanks — sans liquification. He pops up in our story about recession-era entrepreneurs, prompting us to veer away from the usual lineup of Internet obsessions and learn more about the technology of jellyfish tanks.

Mr. Andon says that a couple of decades ago, scientists figured out how to build tanks – known as Kreisel tanks – that use a special water-flow process to protect jellyfish. When the creatures drift near the pumps and filters, the tank delivers a current of water that washes the jellyfish in the other direction.

Sounds simple, and it can be — relatively. But Mr. Andon says that the technology can take getting used to, and that hobbyist discussion groups on the Internet often include conversations about tank-building efforts gone awry.

“It ends in frustration and people killing tons of jellyfish,” he said.

Only in the last few years have there been efforts to take the jellyfish out of research labs and public aquariums and create take-home versions of this technology.

Another key challenge, Mr. Andon says, is getting the proper food for jellyfish. Research labs and the like feed them live plankton. But that’s impractical for domesticated jellyfish, he says. So he’s been growing algae — on his roof and in his bedroom — and freezing it to provide his customers with frozen jellyfish snacks.

“It’s a huge pain for people to feed their jellyfish,” he said. “I’m growing it for them.”

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3G Phones Exposing Networks’ Last-Gen Technology

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Published: March 13, 2009

SAN FRANCISCO — Oh, the things modern mobile phones can do. They are music-playing, video-taking, direction-providing multimedia powerhouses. But many people have trouble getting them to perform their most basic functions, like making phone calls.

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George Frey/Bloomberg News

Apple’s iPhone 3Gs on display last July in Salt Lake City. “The iPhone and the carriers are shoving 3G down our throats,” said one analyst. “But the actual experience has been abysmal.”

Phil Marino for The New York Times

Disguised or not, cellphone towers often carry a patchwork of network upgrades.

The underlying problem, industry analysts say, is the complex quilt of the nation’s wireless networks. The major mobile carriers have spent tens of billions of dollars on new voice and data networks that they advertise as superfast wireless express lanes. But analysts say these upgrades present major engineering challenges, and the networks often underperform.

The resulting technological glitches have given many owners of fancy new phones the urge to throw them out the window and onto the highway.

For many, the iPhone has become a symbol of the gap between the promise of a powerful device and the reality of inconsistent service. Its owners complain of continual hiccups, particularly in certain cities.

AT&T, which is the exclusive carrier for the iPhone in the United States, says it has done a lot to improve its network, and is doing more. Last Tuesday, the company announced plans to invest around $11 billion this year to expand and improve its wireless and broadband networks.

“I’m not minimizing the frustration somebody may feel, but I think the improvements in wireless in this country have been extraordinary,” said Mark Siegel, a spokesman for AT&T. “It’s come a long, long way.”

For some AT&T customers, more improvements to the company’s so-called 3G, or third-generation, high-speed network can’t happen soon enough. And industry analysts say the problems at all carriers are becoming more glaring as the growing popularity of so-called smartphones puts pressure on their networks.

“The iPhone and the carriers are shoving 3G down our throats,” said Edward Snyder, an industry analyst with Charter Equity Research. “But the actual experience has been abysmal.”

Overall customer satisfaction with cellphone service has been rising, but it varies among cities and carriers. Verizon customers tend to be happiest with their service, while AT&T and Sprint customers were less satisfied, according to a survey published in Consumer Reports magazine in January. Bob Goodson, 28, the chief executive of a start-up in San Francisco, upgraded in January from a 2G iPhone to a 3G version. On the whole he is very pleased, he said, but his experience varies widely based on what part of the country he is in.

During a recent two-week trip to New York, he said, the coverage was far inferior to what he experiences in California, and made it tough for him to use the map function to get directions.

“I found myself walking around Manhattan frustrated,” Mr. Goodson said. “It couldn’t hang on to the network.”

Even when the network is within reach, its speeds are often not what they should be. A Gartner research report released in January found that data speeds for mobile phone users are often half of what is advertised by the carriers. The most glaring problem, Gartner found, is at AT&T.

“AT&T is constantly falling below the threshold,” said Ken Dulaney, a mobile computing analyst for Gartner, who said he had heard from three of Gartner’s major corporate clients in the last three months that their employees were frustrated with AT&T’s service. “I can’t say that Verizon is trouble-free, but we’ve heard fewer complaints.”

The reasons for the trouble are complicated. Part of the problem is that the companies are constantly upgrading their networks — creating a patchwork of technology on cell towers, and integrating slices of radio spectrum that carry voice and data transmissions.

Analysts said the problem was not unique to AT&T, but was especially pronounced on its network in some cities because of the way its infrastructure was built.

AT&T began introducing its 3G network in 2005, upgrading the equipment and antennas at many of its 40,000 cell towers nationwide. It built the network to complement and take advantage of the technology servicing its older 2G or second-generation network. Many phones still use the 2G network, so it must be kept running.

But there are important differences between the 2G and 3G networks, and getting them to work together presents problems, according to engineers who work on the infrastructure.

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