Bloomberg News and Reuters, quoting anonymous sources, are both reporting that Microsoft has agreed to change Windows Vista to respond to Google's complaint that the operating system's desktop search functionality puts competitors at a disadvantage. The details are expected to be included in the antitrust status report coming out later today. No comment yet from Microsoft.

Update, 5:30 p.m.: The Associated Press, also citing an anonymous source, has more details. This would also appear to confirm that the Windows Vista Service Pack 1 beta is due by the end of the year. From the story:

Microsoft has agreed to make changes to the design and function of Windows Vista in the area of desktop search, a person familiar with the deal told The Associated Press. The company will fold the changes into a beta version of a Service Pack software update by the end of the year, and will give computer makers the option to install non-Microsoft desktop search applications, said the person, who requested anonymity because the report had not been released.

Update, 7:10 p.m.: Here's the status report (PDF, 27 pages), and here's an excerpt outlining the changes Microsoft will make:

First, Microsoft will create a mechanism for end users and OEMs to select a default program to handle desktop search. ISVs will be able to register their desktop search products for this default, in the same way that ISVs can register third-party web browsers and media players as the default in Windows today.

Second, the default desktop search program will be launched whenever Windows launches a new top-level window to provide search results. This will include an existing location on the Start menu that a user can select to display additional search results in a new window. Windows Vista also includes search boxes located in the upper-right hand corner of various windows in the operating system, such as all the windows used to explore the files on the computer -- often called "Explorer" windows -- and the Control Panel. In these windows, when the user enters a query Vista will continue to display the search results using the internal Vista desktop search functionality. Microsoft has agreed, however, to add a link that, if clicked, will launch the default desktop search program and display search results from that program.

Third, Microsoft will inform ISVs, OEMs, and end users that the desktop search index in Vista is designed to run in the background and cede precedence over computing resources to any other software product, including third-party desktop search products and their respective search indices. Microsoft will emphasize that there is no technical reason why OEMs and end users cannot, if they choose to, install additional desktop search products on their system, even if those products maintain separate indices from that operated by Windows. products maintain separate indices from that operated by Windows. In addition, Microsoft will provide technical information that will enable other desktop search companies also to design their products to optimize their priorities on the computer and minimize any impact on performance.

Microsoft will deliver the required changes in Service Pack 1 of Windows Vista, which Microsoft currently anticipates will be available in beta form by the end of the year.