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• The closing part of Jobs' keynote was a round of applause for Apple's employees and their families.

• Jobs said that while other PC manufacturers and tech companies are laying off employees and scaling back, Apple is choosing to innovate and introduce new products.

• Apple has a new advertisement to show off iDVD. Jobs first showed the iTunes "Rip, Mix, Burn" ad, and the iBook airplane commercial, then the iDVD spot.

• Research shows that 25 percent of US households will have DVD players by the end of the year - data tha Jobs used to explain the importance of iDVD, Apple's DVD authoring solution. Jobs then showed iDVD 2, a coming upgrade to the software that he said will allow users to "create movies that are as impressive as Hollywood productions." A demonstration followed.

• Going back to the OS X 10.1 demonstration, Jobs showed how the OS automatically recognizes a digital camera and can organize the pictures without additional software. The demonstration failed earlier when Jobs could not operate the camera.

• Jobs then outlined Apple's LCD displays, and started a video highlighting them and the new Power Mac G4 models.

• Jon Rubenstein then joined Jobs on stage to discuss the Megahertz myth, attempting to debunk the notion that clock speed translates to real-world speed. He explained how shorter pipelines, and other variables make the G4 faster at a lower clock speed.

• Next came a speed test, as Jobs was joined by the venerable Phil Schiller, comparing a G4/867 to a 1.7 Ghz Pentium 4 in Cleaner. The Power Mac noticeably bested the Pentium system. Photoshop was also tested on the same setup, yielding the same results.

• Three new PowerMac G4s were intrduced with speeds of 733, 867, and dual 800 Mhz. Prices are $1699, $2499, and $3499 respectively, and drive sizes are 40, 60, and 80 GB respectively. They sport essentially the same enclosure and components as previous models with slight variations. The 867 Mhz, and dual 800 Mhz models will both ship with SuperDrives. The 733 and 867 will ship with GeForce 2 cards, while the dual 800 will ship with a dual display card.

• Three new iMacs will ship, with 500, 600, 700 Mhz models. They will all ship with CD-RW, but the 700 Mhz flavor will not ship until August. No new form factor was introduced.

• Jobs then spotlighted the iBook, mentioning some of the glowing reviews that the notebook has received from the press. He did the same for the TiBook.

• Mac OS X 10.1 will ship in September, and will be a free upgrade.

• Finder-based CD burning and DVD playback were both demonstrated without fail, except for a slight glitch in when attempting to play the Toy Story DVD.

• Jobs launched Internet Explorer in OS X 10.1, and it took only one bounce to appear on the screen. He also showed the resizing and minimizing were enhanced dramatically in terms of performance.

• OS X 10.1 sports DVD playback, CD burning in the finder, support for 200 new PostScript printers, and new networking functionality. There is also full support for managing AirPort base stations.

• Jobs then debuted Mac OS X 10.1, saying Apple focused on faster window resizing, menus, and application launching as well as improving the Aqua interface.

• Richard Karris from Alias|Wavefront demosntrated Maya for OS X, showing a detailed 3D QuickTime movie.

• Michael Rogers from Aspyr Media came on stage to demo his company's games for OS X, including Tony Hawk's Pro Skater 2.

• Jobs said "Let's play some games!" followed by a presentation of WarCraft III from Blizzard Entertainment, which is fully Carbonized.

• Michael Ross was next on stage, demonstrating WorldBook 2002, an encyclopedia for Mac OS X. He showed how WorldBook could map the Jacob Javits Center.

• Toby Maners from IBM took the stage to show off IBM ViaVoice for OS X, navigating through the OS and dictating a letter. The demonstration drew loud cheers from the crowd.

• Kurt Schmucker, VP Product Development at Connectix, demonstrated Virtual PC Test Drive for OS X, which MacNN was first to report on early this morning. He ran AutoCAD under Windows 98 with seemingly good performance.

• Dominique Goupil, President of FileMaker, Inc., then took the stage to announce that 15,000 copies of FileMaker Pro 5.5 shipped in North America. FileMaker plans to have all of its products running nateively on Mac OS X shortly.

• Brett Buhler, Senior Product Manager for Quark was next, demonstrating Quark Xpress 5.X, the Carbon version of his company's page-layout app. He demonstrated the "print to web" functionality in Xpress 5.X.

• Next on the stage was Shantanu Narayen, Executive Vice President of Worldwide Products and Marketing from Adobe, who said his company is hard at work bringing all of their major applications to Mac OS X. Another Adobe employee demonstrated Illustrator, and its new features under OS X.

• Kevin Browne from Microsoft then took the stage to talk about Microsoft Office for Mac OS X. He said the OS X version of Excel is the best version of the software MIcrosoft has shipped for any platform.

• 29 percent of developers plan to develop OS X apps in the next 3 months, 55 percent of developers said they plan to deliver an OS X app within 6 months.

• The next topic of discussion was Mac OS X. Jobs said OS X was introduced 116 days ago, and now has more than 1,000 native apps.

• Jobs was featured in a video showing the opening of an Apple Store, explaining every section and showing off products.

• Four more stores will be opened in August, including Willow Bend, Dallas, TX; Mall of America, Minneapolis; Woodfield, Chicago; Northshore, Boston

• Steve took the stage and began talking about Apple's retail stores, and how they are located in prime mall locations.

• Keynote attendees are getting settled in their seats as music from the Beach Boys plays in the background. The on-line Apple Store is currently down for "reconstruction."