Gates parades Microsoft's latest toy...

Microsoft boss Bill Gates hit Madrid yesterday to talk up his latest technology - the Microsoft Tablet PC.

Gates claimed he had invested hundreds of millions of dollars in developing the notebook computer that enables users to scribble notes and diagrams as if using paper.

Speaking to business leaders in the Spanish capital, he said technologies such as the Tablet and wireless internet software will increase workers' productivity.

Consumers are the new killer app, he claimed, with software targeted to beef up personal organisers using the tablet technology.

Research into hand writing and speech recognition could lead to marked improvements in users' ability to share knowledge, Gates said.

Gates also shed some light on how Windows XP was faring in a depressed economy.

"I'm extremely happy at how those sales have gone. Putting man on the moon was easy compared to Windows XP," he said.

But Gates has little to worry about even if the Tablet PC does not catch on, as he has set aside a $30bn cash stash to continue running the business and fund its annual $5bn R&D budget.