The introduction of Microsoft's new Windows XP operating system could be delayed if a civil law suit is filed over the issue of adding features to the software platform, an international research group has claimed.

Gartner believes a civil suit may be filed against Microsoft over Windows XP, creating a "small but real potential" that the operating system will not ship until after the fourth quarter.

Microsoft has set the launch date for October 25th and a delay could affect its revenues and its Irish operations, which are working on the project.

Gartner issued its warning in a briefing note compiled following Microsoft's decision last week to back down on its insistence that its products must be installed on PCs along with its operating system.

This means PC manufacturers will now be able to display competing software, such as Netscape, more easily on desktops.

Microsoft made the decision to address a US Appeals Court ruling that found certain provisions in Microsoft's licences with PC manufacturers impaired the distribution of third-party Web browsers.

However, this week Microsoft asked a US appeals court to re-examine this ruling. The company said it filed the re-hearing request because it believes the ruling was based on "clearly erroneous" findings of a lower court.

Legal experts said the company is hoping to have the issue re-heard because it wants to continue to integrate new features into Windows XP, its new operating system scheduled for release in October.

However, Microsoft Ireland product manager Mr Maurice O'Connell rejected Gartner's analysis and said the company was very much on track for an October release date.

"Our decision last week was a good move from Microsoft . . . We took it as an act of good faith following the ruling from the US Department of Justice," he said.

"We don't anticipate there will be any problems from Windows XP."

According to Gartner, Microsoft's policy change represents many things to many parties.

For AOL and other third parties, it gives an opportunity to make their products more accessible to users of the Microsoft platform.

For PC manufacturers, it offers a chance to provide another feature to differentiate themselves in the eyes of consumers.

For consumers, it offers more choice on Microsoft platforms.

For Microsoft, it represents an olive branch to the US Court of Appeal and marks a goodfaith effort that the software giant is trying to put the antitrust case behind it.

Microsoft also announced last week it had settled its anti-trust case with the US state of New Mexico, one of 17 states, together with US government, which Microsoft has been battling through the courts for four years.

It is thought this news may encourage other states to make out-of-court settlements with the company.

But despite Microsoft's conciliatory move, Gartner says it believes this action is only one more step in this process and that the court case is still far from over.

Gartner notes that only the icons of Internet Explorer and Microsoft Network Explorer can be removed, while the underlying technology remains even if the icons are stripped from the desktop.

However, it says the change means a hardware vendor can install other applications, such as AOL, and add the icon to the desktop.

Links: The full gartner briefing is available at http://www3.gartner.com/Display Document?doc-cd99423