Microsoft has strong denied the Vista Code rewrite story but SmartHouse Magazine today reconfirmed their previous story citing a Microsoft partner in Australia.

Raymond Vardanega of Acer Australia told SmartHouse Magazine that Microsoft is having major problems with its Vista operating system.

We have been told that Microsoft has bought in programmers from the Xbox team to work on the problems. We have also been told that up to 60% of the code will have some form of re writing or changes made.

SH further writes that current testing of the consumer version of Windows Vista for consumers still needs a lot of work to cohesively pull these elements together so that the next version actually meets consumer expectations.

Phil Sim provides some background on David Richards, the most notorious and controversial technology journalist in Australia, who penned the Windows Vista Code Rewrite story.

Phil writes that PC sales will flop during Christmas because nobody is going to buy a PC when a new OS is just around the corner.

Though Microsoft and its PC partners will offer free Vista upgrades to people who buy Christmas PCs but that's not going to be enough. Hell, do you want to go through that upgrade process when you can wait a couple of months and have it pre-installed. No way!