From Microsoft Watch: The plot thickens in the Microsoft-Adobe brouhaha. It all started with a letter from Adobe CEO Bruce Chizen to Microsoft CEO Steve Ballmer. Chizen was none too happy with Microsoft's decision to embed Microsoft's XML Paper Specification (XPS) PDF competitor and a PDF-export plug-in into Windows Vista and Office 2007, we hear. Microsoft decided to exorcise the "Save to PDF" capability from Office, plus offer Adobe some Vista bundling deals to compensate. For now, it's no deal; Adobe is threatening to take its concerns to antitrust regulators. But Adobe hasn't totally closed the door on a bundling arrangement, Microsoft's lawyers say.