AOL (AOL) wants prime placement within Windows XP. Otherwise, it threatens to switch from Internet Explorer to its own Netscape Navigator. But that could alienate customers.
Microsoft (MSFT) failed to get AOL to tie its popular IM to MSN's rival Messenger Service. Microsoft wants that tie to be a condition of the deal.
Microsoft wants AOL to offer its Windows media player. That would open a huge new market--but threatens AOL's partner on that turf.
AOL execs continue to lobby Congress about Microsoft's alleged anticompetitive conduct. Gates & Co. want AOL to forgo any legal action.