Microsoft has settled its lawsuit with Real Networks for $761 million. Rhapsody will get promotion on MSN.

At the press conference, Gates and Glaser said the deal settles all the antitrust claims between them. Glaser, who has worked at Microsoft, called the deal “the start of a new relationship” with Microsoft. “We're ending one chapter and opening a new chapter,” he said.

Gates said the companies' agreement extends beyond the legal settlement. Microsoft has agreed to make its operating system “as effective as possible” for Real, easing engineering and ease of use barriers for Real software running on Windows. “It's more advantageous than it might have been before,” he said.