Microsoft introduced its newest software for in-car computing devices Sunday, as well as the industry standards it would like to see adopted for how computers and cars swap information.

Analysts predict that by 2006, nearly 50 percent of all new cars--and 90 percent of luxury vehicles--will have some kind of Internet capability. Dozens of auto makers and electronics companies are vying for position in the young market. Microsoft's unveiled the third version of its Windows CE for Automotive software Sunday. The first version was used in the Clarion AutoPC, a voice- controlled device that combined elements of a car stereo, cell phone and personal digital assistant. The second version will be used in the Internet computer GM plans to install on some Cadillacs later this year. Bob McKenzie, the general manager of Microsoft's automotive business unit, said the new version of Windows CE could be used to control a variety of devices-- everything from a simple, push-button cellular service system such as GM's OnStar, up to an in-dash computer that also controls video entertainment systems for passengers. After four years of work, the number of cars with a Windows CE computer is only in the thousands. But McKenzie said the company expects the business to take off eventually.