Microsoft managers are growing more frustrated each day.

Not only have European regulators forced the company into a more arduous anti-trust settlement than US regulators - but iPods are everywhere across Microsoft's Redmond campus, reports Wired's Leander Kahney in a fascinating insight into the company.

He reveals that "about 80 per cent" of Microsoft employees who own a music player own iPods. And describes managers there as "scared", feeling that even their own workers aren't interested in the Windows-technology backed alternatives to Apple's market leading music player.

In the face of Redmond's increasing paranoia, some workers have resorted to a concealment strategy, choosing to use black headphones in preference to Apple's white ones.

Kahney also notes a series of in-company memos designed to dissuade employees from buying the device, in particular a comical response from Windows Digital Media division general manager, David Fester, which claimed Windows supports some "great" alternative digital music players.