Channel headlines for July 30, 2007: Cisco invests in VMWare, nixes Linksys brand; EU charges Intel with monopoly; court warns on Web contracts; Microsoft sets Web strategy, IBM sets Second Life selling rules.

Cisco investing $150 million in VMware Cisco’s $150 million investment comes on the heels of $200 million from Intel and on the eve of VMware’s expected IPO. [eWEEK]

Cisco disconnects Linksys brand The network is the SMB router. [TheReg]

EU Charges Intel With Monopoly Abuse EU regulators said Friday they have charged Intel Corp. with monopoly abuse for blocking rival computer chipmaker Advanced Micro Devices Inc.’s access to customers. [AP]

Contracts can’t be changed online without notice, court rules A federal appeals court has ruled that companies can’t change their contracts and post those revisions online without notifying customers first. The ruling paves the way for Joe Douglas, a customer of telephone company Talk America, to file a class-action suit against the company. [Computerworld]

Cisco, Clearwell team for ‘e-discovery 2.0′ tools E-Discovery 2.0, a next-generation storage software, aims to better manage growing litigation case volumes. [eWEEK]

MySpace worm uses fast-flux to dodge detection A worm that has turned 100,000 MySpace users’ sites into zombies exemplifies a fluid new botnet architecture that evades security experts. [eWEEK]

Microsoft offers a Web-based strategy Executives said they would add Internet services to Microsoft’s desktop applications to respond to the growing threat posed by rivals like Google. [NYT]

IBM guidelines govern virtual employees Anything pretty much goes in online virtual worlds. Identities are nebulous. Online characters known as avatars chat it up, gamble or even have sex at first sight. [AP]

Microsoft summer interns party at Bill’s Casual lunches with top execs; a company eager to invest in the ideas of beginners; summer barbeques at Bill Gates’ mansion…This doesn’t sound like your job? [eWEEK]