The government will begin showing Gates' eight hours of testimony, culled by lawyers from a 20-hour deposition, on Tuesday, between live witnesses. As with other evidence in the case so far, once it is presented in court, prosecutors are likely to make the tape available to the media.

Small snatches of Gates' testimony have already been played. District judge Thomas Penfield Jackson and the courtroom saw a man who frowned, grimaced and sometimes scratched the back of his head before answering.

Attorney David Boies opened for the government on Monday by showing soundbites from Gates' testimony, in an effort to demonstrate that the Microsoft chairman's sworn statements contradicted internal E-mails he had sent.

The E-mails were a revelation to executives from Netscape Communications Corp., which is atthe centre of the antitrust case brought by the justice department and 20 states. The government alleges that Microsoft competed unfairly in the market for Internet Web browsers to kill Netscape.

"This is a watershed week for many people," said Christine Varney, an outside lawyer for Netscape. Netscape suspected dirty doings at Microsoft, she said, "but to have Microsoft documents lay it out, it was quite stunning."

For example, on video Gates said he never considered investing in Netscape. But he appeared to raise the possibility of investment in a May 31, 1995, memo.

"Of course... we could even pay them money as part of the deal, buying some piece of them or something," Gates wrote.

The government considers that significant in light of a June 21, 1995, meeting where Microsoft allegedly offered to divide up the market for Internet Web browsers, sweetening the pot with a promise of investment. Dividing markets violates both civil and criminal antitrust law.

Microsoft's lawyer took a very differentapproach to arguing the case. John Warden made no attempt to defend Gates against the attack or to dispute the allegations that the company's CEO was untruthful.

Instead, Warden made an understated opening argument on Tuesday and then closely cross-examined Netscape president and chief executive officer Jim Barksdale until the trial adjourned for the week on Thursday.

Attorney Rick Rule, who has been retained by Microsoft as an adviser, explained the strategy behind Warden's approach. "It's not the O.J. trial," said Rule, referring to the sensational televised double-murder trial of former football star O.J. Simpson.

"The government has approached this case as if it were a jury trial... in an effort to put the defendant in a bad light."

Rule said some of the documents offered by Boies appeared to portray a company that wanted to crush its rival and take over its market share.

"Over the last 20 years the law is clear," Rule said. "That doesn't make an antitrust violation."

The government allegedthat Microsoft, secure in its income from a virtual monopoly in the personal computer operating systems market, gave away its Internet Explorer Web browser for free and dried up revenue Netscape counted on from its own Web browser.

But Rule said the cross examination of Barksdale had shown that Netscape never expected to generate revenue from browsers and instead had looked to other areas.

Microsoft's lawyer presented Netscape's Barksdale with documents he said made that point. Barksdale vigorously disputed that interpretation.

Barksdale's testimony has taken far longer than predicted. With 23 or more witnesses yet to appear, Judge Jackson indicated he planned to keep firm control over the proceedings and move the trial along at a reasonable pace.

Warden said last week he would need at least until Monday to finish examining Barksdale.

"I'm going to hold you to your Monday -- at the latest --commitment," Jackson responded.

"I didn't think I made a commitment, your honour," Warden replied.

"Youjust did," said the judge.