Gizmodo editor Jason Chen has had his home computers seized this week by California's Rapid Enforcement Allied Computer Team.

The team was working on a warrant from the Superior Court of San Mateo.

Chen recently revealed the upcoming iPhone 4G/HD, which was dropped in a bar by Apple developer Gray Powell, and eventually purchased by Gizmodo for $5000 USD.

New to the "iPhone HD," are a front-facing camera for video conferencing, a better standard camera (including larger lens and flash), a Micro-SIM slot (just like the iPad), 960x640 resolution, a second mic, metallic exterior (not plastic) and split side buttons for volume.

After the report went up, Apple demanded its prototype back.

All pics via Gizmodo:

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According to data from market research firm FADE (Forecasting and Analyzing Digital Entertainment), Xbox Live Arcade sales in March 2010 were the best ever, with a full 41 percent year-on-year growth from last year.

Revenue topped $10 million USD for the first month ever, and growth was strong from the preceding months, where revenue were under $7 million each month.

Overall, for 2010, revenue has grown by 5 percent year-on-year but if March's trend continues, expect that number to be much higher.

Analysts have attributed the boost to Microsoft's "Block Party" promotion, which highlighted a group of games, including the popular Toy Soldiers which brought in $3 million in revenue by itself.

The full list, via GI:

* Toy Soliders - 209,000 units ($3.14m)
* Perfect Dark - 161,000 units ($1.61m)
* Trials HD - 53,000 units ($0.80m)
* Battlefield 1943 - 37,000 units ($0.56m)
* Castle Crashers - 34,000 units ($0.51m)
* Hasbro Family Game Night - 32,000 units ($0.32m)
* Scrap Metal - 18,000 units ($0.27m)
* Marvel vs. Capcom - 25,000 units ($0.25m)
* Shadow Complex - 13,000 units ($0.20m)
* Magic: The Gathering - 16,000 units ($0.16m)

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In late October we reported that Microsoft was blocking all "unlicensed" Xbox 360 storage devices, successfully forcing gamers to only purchase memory cards sold by Microsoft, at a higher price.

Large peripheral manufacturer Datel struck back in late November, filing an antitrust lawsuit.

In response, Microsoft filed motions to have the case dismissed but a judge has thrown out those motions today, clearing the way for Datel's suit to move forward. Because the motions were dismissed, the two parties will now meet in preparation of their upcoming June 2nd hearing.

Microsoft recently sued the UK-based accessory maker over its Xbox 360 controllers, claiming the company illegally copied the design.

The controllers in question are the Datel "TurboFire" and "WildFire" wireless controllers, which sell for $40 USD online. Microsoft says the controllers infringe on a few patents held by the software giant.

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Verizon has announced that FiOS TV users can now stream YouTube and Internet Radio directly from their displays, using their remote controls or smartphone.

Subscribers can access the music and video sharing site via Media Manager, which is now available to all FiOS TV owners, instead of just DVR customers.

"Adding YouTube and Internet Radio to FiOS TV further expands our customers' digital home-entertainment world by giving them access to an unprecedented amount of online content on the biggest screen in their home – their TV," adds Shawn Strickland, vice president of consumer strategy for Verizon. "When customers connect their homes to our all-fiber network, their TV and Internet worlds seamlessly come together to create experiences cable can't deliver. We are working with some of the most popular companies on the Web to create a high-quality, engaging Internet-to-TV experience that will only grow richer with time."

Users can even use their Motorola Droid phone as a remote control if they download a free "Mobile Remote" app from the Android Market.

To be able to watch YouTube, you will need an HD set-top box or a FiOS TV DVR. From there, it is a simple firmware upgrade.

You can check videos of the service here: http://verizon.mediaseed.tv/Story.aspx?story=37370

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Research In Motion has shown off their upcoming BlackBerry OS 6 today, which improves on most of the past OS features, with much improved touch support.

Th new browser has tab switching, favorites, multi-touch, using WebKit. The tabs have transparent overlay.

There is an updated media player, one that looks much more like the cover-flow used by Apple in the iPhone.

BGR adds: "RIM has finally implemented system-wide kinetic scrolling with rubberbanding. This makes the experience a bit more fluid when scrolling through lists, web pages, emails, and the like. There is also multitouch system-wide, from the web browser to the photos application, and yes, pinch to zoom is in there."

Overall, the OS looks more modern, with the messaging/email inbox's looking much cleaner and updated. Thumbnails are larger and clearer so users can see where the messages they are receiving originated from (Twitter, email, text, Facebook, etc)

The Home screen is also now completely customizable, with different homescreens allowing for apps, pages, favorites. There does not appear to be widget support, however.

There is also now Gesture use, which BGR explains after testing the OS: "If you tap and hold (obviously a touchscreen device is required), you'll get a 9 icon group centered on the screen which is basically a pretty context menu. For instance, you could be composing an email, and instead of pressing Menu + Send, you could tap and hold on the email, see the popup window, and hit the send icon there. Another use would be when emailing photos or videos from your device, just tap and hold on an item there, see the popup, and then just send the item."

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LOK-IT has unveiled their latest Secure Flash Drive, a portable drive with a full PIN keypad.

There are two versions available, one with a five-key PIN, or a second with ten keys. Both drives use 256-bit AES encryption and remain encrypted until the correct PIN code is typed in.

The drives can be used in Windows, Mac or Linux computers.

Anyone trying to brute force hack the PIN number will be stopped in their tracks, as after ten failed attempts the drive must be reformatted.

There are 2GB, 4GB, 8GB and 16GB capacities available.

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According to a new DigiTimes report, the Barnes & Noble Nook e-reader outsold the Amazon Kindle, although both were outsold by the Apple iPad.

Mingchi Kuo, analyst at Digitimes, says manufacturers shipped more Nooks than Kindles, with the Nook accounting for 53 percent of all e-readers shipped to the U.S. for the month of March 2010.

That being said, shipped units does not always lead to sold units (speak to Palm about that), but it still appears that Nook devices are selling well and demand remains high.

Overall, global e-reader shipments for the Q1 2010 were 1.43 million units.

Although the iPad is not considered solely an e-reader, the device outsold both the Kindle and the Nook, with 750,000 units already sold in the U.S.

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SurferGirl, known for her pretty spot-on predictions regarding Microsoft and the Xbox 360 has put a blog post this week with two main highlights.

She says Microsoft will be revealing a Slim Xbox 360 bundled with Natal at one of their press conferences during the upcoming E3 event.

Additionally, the updated console will be getting a new logo, and all Slim models will also be in a black colorway, including Natal. The underlying feeling is that most HDTV owners own glossy black televisions, and a white Natal would not fit in.

The second highlight of the post is SurferGirl saying that an Xbox 360 version of Metal Gear Solid is coming, and will work with Natal.

You can read the post here: SurferGirl Strikes Back

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