We're all awaiting the annual Microsoft keynote, to help kick CES 2009 off in style. We're not really sure exactly what to expect--it'll certainly be a marked change from last year, what with all of the celebrity-packed Bill Gates goodbye videos, not to mention the Slash/Gates Guitar Hero battle.

One thing's for sure, however: For better or worse, the company's current CEO, Steve Ballmer, is alway entertaining. At the very least, we know we're in for a lot of screaming, frantic flailing, and probably some sweaty pit stains.

If you're looking for a quick, easy way to get back on the wagon, I suggest taking a shot only when Ballmer mentions Windows Vista. This year's address will be all about Windows 7--and beyond. And even more than that, it'll be about the Windows' "lifestyle" rather than any alliance to a particular iteration thereof. Oh, and they'll probably come up with an excuse to bust out the Surface again. And, if we're lucky, Gates will pop his head in for solidarity.

We'll start our live blog here at 6:30 PM PST, 9:30 EST (or a little before). Be sure to hit Reload. A lot.

For PCMag's full CES coverage, go to http://www.pcmag.com/category2/0,2806,2235882,00.asp.

The entire live blog text plus images follows the jump. And check Michael Miller's blog, Forward Thinking, for details and insight on Ballmer's Windows 7 Beta announcement tonight.

10:51: Huzzah. They're singing a song about Wednesday night. And that's all, folks!

10:50: Shapiro: Steve, you did a phenomenal job. Ladies and gentlemen, I'm happy to kick off CES, and welcome Tripod back for one more song.

10:49: Ballmer: Makes me want to go back to school. Despite the economy, we have an incredible future ahead of us. Thank you for your support and good night. It's been my pleasure to have been with you today.

10:48: This could become the future Surface. [Janet exits]

10:47: This is a great example of devices working seamlessly together. Everyday objects are going to become more interactive [Puts a brain model on the screen] This is looking at future software on current hardware. Here is future hardware: an inch-thick flexible display.

10:45: Let's take a look at how some of the technologies can help us collaborate. Say I'm at the library and there's a Surface computer: I can put my tablet or phone down and share the information.

10:44: Here I got information and an animation from my professor. My colleague is showing me a drawing. This system has anticipated the types of information I might need to use.

10:43: Janet: Showing you some prototypes. Suppose I'm a college student and I've got this great digital textbook. As I click through, it's pulling information from the cloud. I've got Grey's Anatomy. And a full 3D model of the human body.

10:42: Communication will also be transformed, moving seamlessly through voice, text, and video. And software will know whether to interrupt you. There are a lot of exciting things ahead. I'd like to invite Janet Galore onstage to show some of the emerging technologies.

10:41: Moore's law has morphed to a world where we get more processors. This industry will be up to that task. Screens and displays will literally be everywhere. The third trend is PCs, TVs, and phones will become a single platform for creating experiences. These trends will make computing more useful and more personalized.

10:40: [Steve is back] Steve: After Robbie's presentation, you should have a sense that TV won't be left behind. When I look at the new products, I know we're on the verge of the kind of transformation that only happens once every 10 years.

10:39: Robbie: That's a generation-defining experience. We're about expanding the audience. We're really going to connect friends, family, kids, and adults. Microsoft will connect your entertainment experience.

10:38: [They're playing, and she's kicking his butt.]

10:35: [She's demonstrating the game ridiculously fast. Robbie "I'm glad you're doing this and not me."]

10:34: The community games channel lets aspiring developers create and sell their own games. We're shipping a new product called Kodu that lets kids learn to program and create their own games. They can distribute them on Xbox 360. [A kid named Sparrow has entered the stage. "Actual 12-year-old girl." She's demoing Kodu.]

10:33: Let me transition into music. Last year we had Slash. Xbox has been successful in music. Weekend nights are turning into music nights at home. Fans want an interactive experience with products like Rock Band and Guitar Hero. We've seen 60 million music downloads. Now artists like Metallica, ACDC, Motley Crue, and Bruce Springsteen are using this platform. It's another form of connected social entertainment.

10:32: This is the type of interactive control you get with a digital experience. I have a mobile phone with a new app available later this week. It lets you control your queue from your Windows Mobile phone.

10:31: Robbie: NetFlix and Xbox Live members can use this service.

10:30: [Can't get his controller to work. Okay, it's working. "Didn't press the button hard enough! Now he's checking his NetFlix queue on the Xbox. Grabbing "30 Rock" and streaming it in real-time]

10:28: Robbie: That's a great addition to Xbox live that comes this Spring. We're expanding into the video marketplace as well. We know have 45 partners. In November we added NetFlix.

10:27: [Robbie is playing the game with his headset. One of the avatars appears to be Bill Gates, "Big Bill." It's a quiz that lets people play together]

10:25: Let's transition to Xbox live. In November we launched Xbox Experience. There's been a dramatic increase in focus on movies and TV. We see it taking place in the area of a social network. People experiencing entertainment together. It includes avatars which lets people create a virtual you in the universe. We see this as a really exciting opportunity to coniuntue to expand Xbox live. This Spring we're launching Prime Time. It creates live programming. The first example is a live game show called 1 Versus 100.

10:24: It's the defining app for social gaming. This year is adding two titles to Halo: Halo Wars, the first T-rated Halo game. A strategy game. Available Feb 28th. And a downloadable demo. The second title, Halo 3 ODST, is more traditional with new characters and scenarios. All of this is coming in 2009.

10:23: That gives you a good wrap on 2008. Let's talk about 2009. I'm gonna start with Halo. We've sold over 25 million units. It redefines online gameplay on a console.

10:22: Xbox had a spectacular year. We have more than 28 million consoles, the industry leading attach rate, and now that we're under $200, we think you'll see accelerated momentum. Xbox Live has more than 17 million members. That's 70% growth in 2008.

10:21: Partners will be creating interactive apps that will be available on your TV. I think you'll see a lot of progress.

10:20: As we turn to the TV, we've had a great year on Media Center. We have 10 million unique users a month. Our work on the TV includes MediaRoom, an IPTV product. We had a growth of 250% over last year. We're also expanding MediaRoom to include Anytime to let you go backwards to search, find, and watch old TV shows.

10:19: Zune had a great year. We won critics over. We've doubled the number of people on Zune Social. We also drove innovation with subscriptions. This fall we let you keep ten songs a month.

10:18: Ford is bringing out a new version of Sync with Tell Me.

10:17: Robbie: I want to talk about the cloud in an entertainment context. It's about connecting friends and family and creating social experiences that bring people together. Entertainment is the best when you can share it. When I was here last year, I had a Ford on stage. We're continuing that work.

10:16: Robbie Bach has taken the stage. President of Entertainment.

10:15: [It's a song about playing the Xbox instead of "making sweet, sweet love."]

10:14: [Is it just me or do they sound like a bad Flight of the Conchords?]

10:12: All of this is Windows. It's about bringing more of your digital life to Windows Live, Life without Walls. [Playing an old "I'm a PC" commercial. Now, a band is taking the stage: Tripod; performing an acoustic set.]

10:11: We're bringing partner sites into the What's New Feed and bring the feature into existing Windows properties. I need to show you one more thing. My favorite feature in Messenger. I'm going to chat with my husband. A little feature called Dynamic Display feature to let video match emoticon.

10:10: I reply and we get a quick pane. Go to restaurant search and one click and the address is in the email. Quick Add is coming soon, bringing the content that you want into the conversations that you're already having.

10:09: It truly brings all updates together in one place. I'm going to take a look at Hotmail to look how we're making it more social. Since we're at CES, here's a new feature. [looking at an email with a restaurant.]

10:08: The What's New Feed also tells me what my contacts are doing on line through partners like Twitter, Yelp. and Facebook.

10:07: The What's New feed gives updates on my contacts. IE has an accelerator bot that lets me translate text. [translating text from Russian] Notice that accelerators give me an inline menu. Let's get back to Windows Live. I'm gonna click through to photos. With one click I can put them into a beautiful Silverlight slideshow.

10:06: When I use IE, Windows Live gets even better. We've heard users talk about getting overload. So with our newest release, we've made Windows Live into a place that brings social updates to you.

10:05: I have YouTube access and can check for flights, find movies tickets on my browser. [Demonstrating how it can help stitch together panoramic photos. Also cropping the photo and posting it to Windows Live.] I just did cool things on my phone, but it's easy to share it with a PC.

10:04: New IE will hit Windows Mobile phones this year.

10:03: Surface Globe is an example of multitouch. [zooming in on a map of Manhattan] I can move through midtown Manhattan on a street level. Consumers get more ways to interact with their PCs. I'm running out of time to talk about Windows 7.

10:02: I can pick music from another PC and play it on my computer or send it to the Xbox in the living room. I can also send it to our Roku. I can access the things I need, when I need them. Let's switch to this touchscreen. We built touch into the DNA of Windows 7.

10:01: No more hunting around. Two clicks and I'm at it again. It's easy to move between things on your desktop. Lets look at an example where W7 makes things easier. You've probably had to set up a lot of home networks for people because it's so complicated. I set up a home network in two minutes.

10:00: Now you can compare windows. I use this for comparative shopping. Now something you do a lot is so much easier. I pin apps a lot to the taskbar. Easy access to my favorite things saves clicks. Jumplist helps you jump to a specific place in an application.

9:59: Charlotte: Thanks, Steve. Get ready to see the new Windows 7 Beta. Let's take a look at my desktop. It's scattered. The typical user has between 5 and 15 windows open. We make it easier to move between these Windows. It's quick and easy. When I want to clear the clutter, I can peek through my docs. These are the kind of intuitive elements that let you navigate easier.

9:58: Again, we're at the start of transforming what Windows is, but we're making very strong progress. I'd now like to invite Charlotte Jones on stage to give a demo of Windows 7, Windows Mobile, and Windows Live.

9:57: Last but not least, our partners have sold more than 20 million Windows phones over the past 20 months. A new long-term partnership with Verizon to add our search to all of their phones.

9:56: This combo gives users a fantastic out-of-the-box experience. Windows Mobile continues to evolve. We have already over 11 different Windows Mobile phones that have sold over 1 million units.

9:55: Second, a partnership with Facebook that will connect with Windows Live. Updates on Facebook will be published to Windows Live. Third, a partnership with Dell to preinstall Windows Live search and Essentials. Dell will be the first PC maker to do that.

9:54: On Friday, we will make it available worldwide. I encourage you all to get out and download. Next I want to talk about Windows Live. It's our cloud solution for keeping your life in sync across the PC, phone, and Web. We're announcing the worldwide availability of Windows Essential. It's final, free and works on XP, Vista and 7.

9:53: It should boot quickly and have fewer alerts. It should make entertainment better. It enables touch. Today I'm excited to announce that we are releasing the beta of Windows 7! Our TechNet customers can get it now.

9:52: We have a bigger opportunity now that 25 years ago to make a difference in people's lives. We are committed to breaking down barriers. MS is transforming what Windows is to an experience. When I think about the future of Windows, I really do think of a life without walls. I'm really excited about the progress of Windows 7. We're putting in all the right ingredients and working hard to make it right and make it ready.

9:50: I want to talk a little about the future of Windows. There are three things that made it successful. It enables apps, hardware, and the Windows experience made it all work together.

9;49: Steve: As you can see, and many of you agree, there are very powerful PCs at many price points. At this time economically, the choice that offers the most power and value is the PC. And that's why, as we say, "I am a PC." And proud of it.

9:47: The linchpin should be Windows. I believe it will remain the center, working across all three screens, seamlessly. When I say Windows, you think about PCs, even though we are extended to the cloud. Windows has become the language that over 1 billion people speak in every country around the world. But Windows is nothing without the hardware. I'm super excited about the cool hardware that we have coming out. I thought we would have a look at some of it. Let's roll this video, please.

[Video starting. PC manufacturer names up. Flashing images of computers. Acer, Dell, HP, et al.]

9:44: In the next couple of years, the PC will be able to hear you and see you. The UIs will involve to be more intuitive and natural. The last area is connected experience. Today much of the stuff we care about is disconnected across devices. Increasingly those barriers are going away. In many ways connecting all of this together is the last mile to creating real barriers.

9:43: Technology is merging devices into a single ecosystem. Over 1 billion phones are sold each year. It's the first computing experience for many people. Smartphones will make up over 50% of the market. The TV is the oldest and in some sense the least evolved. Its capabilities have largely remained the same. Over the next couple of years, the boundary between the TV and PC will dissolve.

9:42: There are more than 5 billion people who have never owned a PC. We have a duty to make PCs more affordable. OLPC and netbooks have helped democratize them.

9:41: At the end of the day, it's the power of idea and innovation that drive us forward, regardless of the environment. There is so much more opportunity ahead us. I frame it in three areas. The first is the convergence of the PC, the phone and the TV.

9:40: I believe companies and industries that continue to pursue innovation will achieve a significant advance. That's why we continue to focus on R and D, investing more than 8 billion dollars last year alone.

9:38: I want to talk about the economy and the work Microsoft is doing. Since we delivered our first keynote, there have been some incredible advances that have changed the global economy. Today our world is facing some really big challenges. Its impact will likely be with us for quite a while. It feels like we've got some reduced expectations, but no matter what happens with the economy, I believe our digital lives will only continue to get richer.

9:37: Since this is my first time at CES, I've to to admit I've gotten a lot of advice and a lot of questions, Bill said, "Make sure you're at CES, not that other one in Vegas." Jerry Yang wanted to know why I keep ignoring his friend requests on Facebook...

9:36: Steve: So this is CES. Thanks, it's a real honor for me to deliver the opening keynote. It's really become something of a tradition. Gates did it 15 years ago and really he's done it ever since. He's devoted his time to helping people around the world.

9:35: Ladies and gentlemen, please welcome Steve Ballmer.

9:34: Ballmer is so focused on continuing MS's innovation. He's known as an energetic leader. But first let's take a look at this video. [Video is playing a cover of Republica, with flashes of various MS services and people running around using MS on mobile devices.]

9:33: We have a phenomenal lineup of top execs. Keynoters include Sony, Ford, Cisco, and Intel. We're proud of the lineup of the Industry Insiders series, as well. And now I am so honored to kick off CES with the pre-show keynoter, Steve Ballmer. This is the very first time he's given the keynote since taking the baton from Gates. Steve received a perfect 800 on the math part of his SATs. He joined the company in 1980 as their first business manager.

9:31: Shapiro: Happy New Year and welcome to CES. After a tough 2008, I'm ready for some optimism, innovation, and vision. You want to come together in one place and talk about what's going on. That's what CES is all about.

9:30: They're playing a Brit-pop song now. I think it may be The Arctic Monkeys. The song is about a scumbag. An odd choice before a Microsoft keynote. Gary Shapiro, CEA president, is taking the stage to a smattering of applause.

9:29: The screens in the background are highlighting various mobile activities. Also: there's some guy running around on screen in a robot suit. Really hoping Ballmer enters in one.

9:27: Oh wait--more beatboxing! One of the beatboxers is actually rapping about CES. I believe he said, "Welcome suckas to CES." I could be mistaken, however.

9:26: This has becoming some sort of strange beatboxing war or sorts... It's over. There is no clear beatboxing winner today.

9:25: We're here at the Venetian, waiting for the Microsoft Keynote to start. Two guys have taken the stage and are beatboxing to some ambient track.