Here's some key sentences that I think sum up the QandA session.

Michael Arrington asks : What about the Internet as the new OS? How does it affect your thinking

Ray Ozzie :

The Internet changed everything, it is a network of networks which were previously viewed as either an A or B choice. Every web site that has an API surface area on it are platforms in themselves and the Internet brings the OS and these API's together in ways never imagined before which is extremely positive.  There is still an advantage of having surface aggregation under one umbrella, common monetization and SLA's.  This is an era of tremendous solution delivery.

Michael Arrington : Is Silverlight a Flash killer? Can Microsoft be successful with designers?

ScottGu:

Dev's and designers want to use a collection of tools and will use what they want and not one platform or another.  Expression focuses on the interactive so don't think it's a case of switching wholesale. I think of Microsoft as a platforms company.

Michael Arrington : Why is MS a credibly provider of dynamic languages

ScottGu: Important to deliver a good offering.  how can MS make DL's work well on top of .NET.  Hire credible, very good developers. Canonicalisation of language.  Releasing source code for IronPython and IronRuby.

Michael Arrington : Online Office, what are MS's plans with Office Live

RO: Office live is a service for small business's with no IT services.  A great example of a composite app taking advantage of WLS and MOSS.  Office Live will progressively broaden, but won't see the same office apps ported to the web.

Michael Arrington : How do you think MS has executed Xbox, Windows Live, Zune etc.

RO: Look at the patten and implementation of XBox, was intentionally designed to be a seamless device and internet experience.  Auto update, started as games, moving to media. Extensibility. using the service as a hub is great.  zune is the second intentionally designed product in the arena.  In terms of Windows has been a service disconnected environment.  In all products looking at scenarios that people use the internet and how to extend services.

Michael Arrington : Is there room for another quantum leap in search (re Google) how does MS do that?

RO: Plenty of room from a scenario perspective of an alternative way of approaching search.  Opportunity for improvement.  DNA of MS that won't go into an area unless they can improve, win etc.  What are effects of entering into competition?  Best moments from MS history revolve around secondary effects of moving into a competitors area. Yields cultural change.  Years ago Sony/PS looked unassailable, now look at XBox, but also the entire creation of the entire media devices division.  Secondary effects of google as a competitor is product groups bringing offerings that they never would have before.

Michael Arrington : To RO - How have you done as CSA?

I'll let him answer that one himself ;)