In a technical session on Thursday afternoon, Microsoft provided the clearest public indication that it is planning on getting Windows 7 completed in time to run on PCs that ship for next year’s holiday buying season.

In a presentation on its somewhat secretive Velocity program to improve PC quality, Microsoft director Doug Howe showed a slide saying that the Vista Velocity program would continue through next spring as Microsoft worked to improve Vista machines that ship in next year’s back-to-school time frame. He went on to say that Microsoft would continue the Velocity effort with Windows 7.

The slides and Howe’s presentation appeared to confirm what has been widely speculated–but something Microsoft has not outright said–namely that Windows 7 is aimed to ship around mid-year, in time to be on machines that ship for the 2009 holiday buying season. After the session, Howe essentially confirmed that Microsoft is aiming Windows 7 for the holidays.

A former Intel Corp. engineer has been charged with stealing trade secrets worth $1 billion from the chip maker while he worked for its main rival, Advanced Micro Devices Inc.

Federal prosecutors in Massachusetts alleged this week in a five-count indictment that Biswamohan Pani, 33, illegally downloaded more than a dozen confidential documents from Intel’s computer system in California during a four-day stretch in June. He had already resigned from Santa Clara, Calif.-based Intel, but remained on the payroll and still had access to the company’s computers while he burned unused vacation days.

What Pani’s supervisors didn’t know then is that instead of taking the time to investigate a hedge fund job Pani claimed he was considering, he had actually started working for AMD and for a brief period was on both companies’ payrolls.

Prosecutors say AMD had no knowledge of Pani’s actions and did not benefit. But they say the information Pani downloaded was worth more than $1 billion in research and development costs, and included details about methods for designing microprocessors.

Under the watchful eye of law enforcement in 40 states, Craigslist pledged Thursday to crack down on ads for prostitution on its Web sites.

As part of Craigslist’s agreement with attorneys general around the country, anyone who posts an “erotic services” ad will be required to provide a working phone number and pay a fee with a valid credit card. The Web site will provide that information to law enforcement if subpoenaed.

Jim Buckmaster, Craigslist’s CEO, said the deal will allow legitimate escort services to continue advertising, while providing a strong disincentive to companies that are conducting illegal business.