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The software giant is being sued by two plaintiffs who claim that the "Windows Vista Capable" logos that were added to PCs before the operating system's launch were misleading. They argue the label suggested the PC could run any version of Vista, when in fact it was only guaranteed to run Vista Home Basic.

In February a judge granted the case class-action status.

However, that appeal has failed, raising the prospect of yet more humiliation for the Windows manufacturer.

Documents and emails from partners such as Dell, HP and Intel are expected to be used as prosecution evidence in the case.

Microsoft may also be forced to reveal further internal emails. The court has already heard how former Microsoft co-president, Jim Allchin, told his colleagues that they had "really botched" the Vista Capable scheme, whilst another Microsoft employee wrote that "even a piece of junk will qualify" for the sticker.

An earlier filing to the court cited PC Pro contributing editor Jon Honeyball's interview with Acer Corporate Vice President, Jim Wong, in which he claimed "Premium is the real Vista".