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MOUNTAIN VIEW, Calif.–After an hour-long discussion at a status meeting last month, the Hotmail redesign really boiled down to one key decision: one big ad, or two?

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MOUNTAIN VIEW, Calif.–After an hour-long discussion at a status meeting last month, the Hotmail redesign really boiled down to one key decision: one big ad, or two?

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After months of reworking the venerable Web mail program, Microsoft’s team had made all the easy fixes: They’d added more colors and even offered a way to make the new Windows Live Mail look just like the old Hotmail. But sitting around a table in the nondescript Pyre conference room in Microsoft’s Silicon Valley offices, the half-dozen developers and managers couldn’t avoid the thorny issue that remained. A significant number of people believed that the new design had too much space devoted to ads, making it hard to use some of the mail program’s new features.

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*Sadly, we had to bring back ads too. Hopefully more targeted.