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The Internet, said former national intelligence director Michael McConnell, “is the soft underbelly” of the U.S. today. Speaking recently at a new cybersecurity exhibit at the International Spy Museum in Washington, McConnell said the Internet has “introduced a level of vulnerability that is unprecedented.”

The Pentagons computer systems are probed 360 million times a day, and one prominent power company has acknowledged that its networks see up to 70,000 scans a day, according to cybersecurity expert James Lewis.

For the most part, those probes of government and critical infrastructure networks are benign. Many, said McConnell, are a nuisance and some are crimes. But the most dangerous are probes aimed at espionage or tampering with or destroying data.

The attackers could be terrorists aiming at the U.S. culture and economy, or nation-states looking to insert malicious computer code into the electrical grid that could be activated weeks or years from now.

“We are the fat kid in the race,” said Lewis. “We are the biggest target, we have the most to steal, and everybody wants to get us.”

Steps to improve computer security at home include:

-using antivirus software, spam filters, parental controls and firewalls.

-regularly backing up important files to external computer drives.

-thinking twice before sending information over the Internet, particularly when using wireless or unsecured public networks.

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Are you safe online? Take the quiz: http://tinyurl.com/yk5j23u

Security Tips: http://www.us-cert.gov/cas/tips/

Spy Museum: http://www.spymuseum.org/

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The change came after government computers set up to handle the filings buckled under a flood of dealers trying to send in their sales agreements at the last minute. Under the original plan, those deals that werent submitted on time wouldnt be repaid, leaving many dealers fearful that they would be left on the hook for clunker sales they made.

“The computer system has been down or very slow for most of this day, and we literally have thousands of dealers with probably millions of deals that they would like to submit and just have been unable to,” said Michael Harrington, chief legislative counsel for the National Automobile Dealers Association.

Computer problems have plagued the program, as it proved far more popular than government officials expected. A rush of filings also bombarded the online system earlier this month when it appeared the first $1 billion Congress set aside would run out just days after sales began. Transportation officials later expanded its computer network capacity and tripled the number of staffers working on the program.

The big rush of filings on Monday, however, shut down the filing system temporarily, prompting auto dealers to push for an extension.

“Weve spent the better part of the last three days trying to hack our way into their computer program that has been down more than its been up,” said Alan Starling, who owns two General Motors dealerships in central Florida. His staff was still trying to submit all the paperwork for 75 deals through the clunkers program.

Transportation Secretary Ray LaHood, speaking to reporters in Norristown, Pa., earlier in the day, said the program was an unprecedented success and a boon for car dealers, automakers, scrap yards and financial institutions. He estimated that by the sales deadline later Monday, “there will be 700,000 to 800,000 cars that have been sold, most of them fuel efficient,” replacing gas-guzzling cars and trucks.

Transportation officials said that, through early Monday, dealers had submitted 625,000 vouchers totaling $2.58 billion. Many car dealerships have worked overnight in recent days to submit the 13-page application to be reimbursed for the trade-in vehicle, including the title, proof of registration and proof of insurance.

Cash for Clunkers has been wildly successful in spurring new-car sales and getting gas-guzzling models off the road, though some energy experts have said the pollution reduction is too small to be cost-effective. Customers receive rebates of between $3,500 and $4,500, depending on the improvement in fuel efficiency from their old vehicle to their new one.

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Associated Press writer JoAnn Loviglio in Norristown, Pa., contributed to this report.

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“There is a good chance that there could be a record fine for an abuse of dominance case, and that it could exceed the fine against Microsoft,” Graf said.

The commission decision may increase pressure on Intel as computer sales decline because of the economic downturn. Intel the worlds biggest computer-chip maker, has kept its market share at about 80 percent by granting rebates that are conditional on computer makers buying all or the majority of their chips from the company, the commission has charged.

Intel has been entangled in a dispute with the EU for more than eight years following a complaint by AMD. Intel, facing a related civil lawsuit filed by AMD in federal court in Delaware and an investigation by the U.S. Federal Trade Commission for alleged unfair business practices, is likely to start a lengthy appeal at European courts to prevent the EU ban on rebates from taking effect, lawyers said.

Pricing Strategy

“A lot of their business is based on this pricing strategy,” said David Anderson, an antitrust partner at Berwin Leighton Paisner LLP in Brussels. “If youre defending your strategy, youre defending something thats pretty valuable. Theyre taking a staunch defense and they are playing the long game.”

Santa Clara, California-based Intel has argued that its operating fairly in a competitive industry. Computer makers choice of its chips is based on quality and performance, Intel has said. AMDs contention that Hewlett-Packard Co. was “pressured” to use Intel processors is wring, Intel said in the Delaware case.

Robert Manetta, an Intel spokesman in London, said the companys business practices are “legal, pro-competitive and good for consumers. Jonathan Todd, a commission spokesman, had no comment.

Fine Calculation

The commission uses 2006 guidelines to calculate fines. Lawyers expect a record amount because penalties are based on 30 percent of the sales of products and are then multiplied by the number of years the violation occurred. The commission can raise levies against large companies as a deterrent. Failure to cooperate with investigators is also considered.

Intels European sales were $7.1 billion last year, meaning the potential starting amount is $2.1 billion. That amount would be then multiplied by years of the violation.

EU Challenge

Intel lost a bid to delay the EU investigation last year by filing a lawsuit at the European Court of First Instance in Luxembourg. The tribunal said the company failed to demonstrate enough “urgency” to qualify for interim relief. Intel sued in October, arguing that the EU probe is discriminatory and that regulators breached the companys rights by denying it access to relevant evidence.

The Brussels-based commission accused Intel in July of giving computer sellers “substantial rebates” not to sell machines using Sunnyvale, California-based AMDs chips. Those charges followed an initial set of accusations in 2007 that Intel gave rebates and made below-cost sales to manufacturers, including Dell Inc. and Hewlett-Packard, to coax them not to use AMDs chips, according to the Court of First Instance ruling.

Intel fell 48 cents, or 3 percent, to $15.29 in Nasdaq Stock Market trading in New York on May 8.

Intel said on April 14 that first-quarter profit fell 55 percent to $647 million, or 11 cents a share, from a year earlier, because of slowing computer demand. The company signaled that sales wont recover in the current period.

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QLogic, Emulex and Mellanox Technologies Ltd., which makes products that help servers communicate, have a combined market value of less than $3 billion and their annual sales are equal to about 1 percent of IBMs. They get about half their revenue from IBM, Hewlett-Packard Co., Dell Inc. and Sun, according to data compiled by business relationship Web site Connexiti.com.

“The real threat is its a 1 plus 1 equals 1.7 situation,” Boston-based Falvey said in an interview. “Im sure those guys are nervous.”

Emulex gets about 35 percent of its revenue from IBM and Sun, compared with 27 percent for QLogic and 23 percent for Mellanox, according to Connexiti. A combined company would have the scale to press suppliers for lower prices, potentially reducing the value of sales, Falvey said.

IBMs Dominance

The deal would give IBM, the largest maker of server computers, almost half of global server sales, and may spark a wave of acquisitions that could pressure suppliers further. That, coupled with the recession, has weighed on cash flow and available credit at those smaller suppliers, which may in turn push them to combine to stay afloat, Deloitte LLP Vice Chairman Eric Openshaw said.

“If you have a big cash war chest, you can ride this thing out,” said Openshaw, who leads the consultants technology group. “If you dont, youre probably looking to see who your most logical partner is.”

IBM, based in Armonk, New York, would pay about $10 for each share of Sun, according to the people familiar with the matter. Server computers run networks and Web sites.

Dell, the second-largest personal computer maker, and EMC Corp., the worlds biggest maker of storage computers, may be next in line to be sold, Revolutions Falvey said. Round Rock, Texas-based Dell has cut jobs to help reduce $4 billion in expenses as it deals with a recession thats predicted to cut PC shipments by the most ever this year, while EMC is one of the few, mid-sized companies left to target, he said.

Stock Performance

Emulex gained 32 cents, or 6 percent, to $5.68 yesterday in New York Stock Exchange composite trading. QLogic rose 43 cents, or 3.7 percent, to $12.11 on the Nasdaq Stock Market. Sunnyvale, California-based Mellanox advanced 28 cents, or 3.2 percent, to $9.12.

Businesses accustomed to using one type of technology, like the network gear that QLogic and Emulex make, are probably going to be unwilling to part with their equipment, said Ghai, who rates QLogic shares “accumulate” and doesnt own any.

Executives at QLogic and Emulex contend that consolidation wont hurt their business. Aliso Viejo, California-based QLogic supplies chips and switches for corporate networks. Emulex, based in Costa Mesa, California, makes components that help computers store data.

Emulex Stance

“The rumored IBM-Sun deal could have a positive impact on our storage and data networking business” by increasing sales of some products, said Scott Genereux, QLogics senior vice president of worldwide sales and marketing. He touted the companys more than 10-year relationship with IBM and said theres a “strong preference” for QLogics products in Suns user base, which may help increase sales of products that let computers work with other devices.

“Were embracing it,” Emulex Chief Operating Officer Jeff Benck said in an e-mail. “It provides us with stronger customers.” Spokeswoman Katherine Lane declined to elaborate further.

Mellanox spokesman Brian Sparks declined to comment because the IBM-Sun talks havent been officially disclosed. IBM spokesman Ian Colley declined to comment on the companys relationships with suppliers. Sun declined to comment on a possible deal with IBM, spokesman Shawn Dainas said. Representatives at Dell and Hopkinton, Massachusetts-based EMC also declined to comment.

Palmisanos Goal

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“This appears to be a unique event,” the bureau said, adding Airbus, the world’s largest maker of commercial aircraft, issued a telex late yesterday to airlines that fly A330s and A340s fitted with the same air data computer. The advisory is “aimed at minimizing the risk in the unlikely event of a similar occurrence.”

More than 40 passengers and crew needed hospital treatment for spinal injuries, cuts, broken bones and concussion after flight QF72 from Singapore to Perth plunged on Oct. 7. The pilots issued a mayday call and were forced to make an emergency landing at a remote airfield in Western Australia.

A “preliminary analysis” showed the error occurred in one of the jet’s three air data inertial reference units, which caused the autopilot to disconnect, the ATSB said in a statement on its Web site.

Autopilot Off

The crew flew the aircraft manually to the end of the flight, except for a period of a few seconds, the bureau said.

Even with the autopilot off, flight control computers still “command control surfaces to protect the aircraft from unsafe conditions such as a stall,” according to the statement.

The unit continued to send false stall and speed warnings to the aircraft’s primary computer and about 2 minutes after the initial fault “generated very high, random and incorrect values for the aircraft’s angle of attack.”

The flight control computer then commanded a “nose-down aircraft movement, which resulted in the aircraft pitching down to a maximum of about 8.5 degrees,” it said.

“Airbus has advised that it is not aware of any similar event over the many years of operation of the Airbus,” the bureau added.

The ATSB said its investigation continues.

The incident was the latest scare for Australia’s largest airline, whose safety record was made famous in the movie “Rain Man” in which Dustin Hoffman’s character insisted on flying Qantas because it hasn’t had a fatal jet accident.

On July 25, a Qantas aircraft made an emergency landing in Manila after an oxygen tank exploded, puncturing the plane’s fuselage at 29,000 feet (8,800 meters).

On Aug. 2, a Qantas flight was forced to return to Sydney, where the airline is based, soon after takeoff because of a fluid leak in a wing.

Source: Bloomberg