HackWire reports that Microsoft has been hacked, but this is no run-of-the-mill DOS attack or website defacing, we are talking about the break in to hardware that holds source code to unreleased programs:

A recent break-in to Microsoft's main computer system has caused the company great panic and loss of information. The hacker which goes by the name of Liquid Metal, is thought to have stolen several new Microsoft programs including Windows 2005 and an anti-hacker program under secret developement by Microsoft. A note was left on Microsoft computers stating "I'll be back for the rest."

It will be pretty interesting to see how this all pans out.