Techwatch

By Kathleen Adams, Daniel Eisenberg, Tam Gray, Anita Hamilton, Declan McCullagh, Michele Orecklin, Alain Sanders

THESE BUDS--AND THESE FROGS--ARE NOT FOR YOU

It may be O.K. for the Budweiser talking frogs to sip a few brews, but they never, ever inhale. At least that's what Anheuser-Busch seemed to be saying when it threatened to sue a pro-marijuana Website depicting the amphibian trio croaking "Bud is wiser." Scott Jeffrey, the owner of legalize.com yanked the graphic but grabbed the domain, budiswiser.com "I have the constitutional right to parody," he says. And, he claims, to smoke pot regularly. Does Jeffrey inhale? "Definitely."

HIGH STAKES: FEDS DEAL A BLOW TO ONLINE GAMBLING

What are the odds the U.S. government will try to shut down one of the few businesses making money on the Net? Pretty high. Last week a U.S. Attorney in New York launched the first federal prosecution of online sports betting, a $600 million operation that may violate a 1960s law making it illegal to place wagers over interstate phone lines. Though the six companies charged with conspiracy are based in the Caribbean or Central America, most of the bets are placed on PCs in the U.S.

TEACHING AN OLD TOY SOME COOL NEW TRICKS

If Tamagotchi left you with the impression that all digital toys are brain dead, Lego Mindstorms could change your mind. This fall the venerable plastic building blocks will come with motors, sensors, cd-rom and computer controller, enabling kids to create blinking, thinking, moving robots. Developed with M.I.T.'s Media Lab, the new Legos ($200) require children (or their parents) to master a computer-programming language before they can bring the toys to life. With 700 pieces, the set should keep kids busy for days before they terrorize the household.