The new version primarily offers back-end improvements to help overall performance, with just a few rudimentary changes in the feature set. It now allows the exchange of brief audio clips of up to 15 seconds, and also includes dynamic backgrounds that add some visual variety to the program's appearance.

The release comes amid published rumors that Google plans to jump into the messaging space with a competing service based on Jabber, an open-source messaging client.

Google has been mum about any future plans, but the rumor of the search giant's entry into the messaging business has caused a buzz on Wall Street.

Microsoft Corp.'s new client features an overhauled interface for faster access to popular features such as specialized channels and favorite places. The new version also promises improved multimedia performance, which had been a sore point in version 7.0.

It also offers a more convenient connection to Microsoft's search services, an area that the company is rumored to be emphasizing as part of its future growth.

While search is becoming a critical function for all computer users, Microsoft is still playing catch-up with Google and Yahoo Inc. when it comes to developing a major presence in that space. Not only has search become a compelling feature for users, it's now a surprisingly large source of revenue for the companies that lead the field.

Whether MSN Messenger will help Microsoft gain ground in the search wars remains to be seen, but that will definitely be an important battleground in the next few years.

The product includes 10 backgrounds that users can choose, and also offers premium collections of background pictures starting at $3 each. The premium collections are offered by Blue Mountain Arts, the popular online greeting card company.

There's also a mobile option that allows MSN Messenger users to connect to European customers with cell phones from Vodafone Group PLC. No announcements have been made yet about connections to other cellular providers. There's no charge for connecting to other PC users, but charges may apply when connecting with cell phone users via IM.

MSN Messenger remains one of the top Instant Message clients, right after America Online Inc.'s AOL product, but it remains to be seen whether open-source approaches to messaging might eventually become more common, particularly among enterprise users who might prefer a different range of choices than the ones that appeal to consumers.

The beta cycle for this release was rather quick, with first beta releases appearing in the spring and the final version released to the public today. Sources close to the company indicated that this timing was merely a quick testing schedule, not a response to competitive pressures. But there's no doubt that the timing of the release will take some attention away from the persistent rumors about Google's plans to enter the chat business.