After months of testing various Network Computer (NC) systems from Sun Microsystems, Federal Express has dropped its plan to deploy 75,000 NCs and has decided to go with Windows 95 and Windows Terminal machines instead. It was the most closely-watched NC test, but lack of features and no clear timeline for a stable NC system kill the deal.

"We haven't found any NC product that would meet our needs," said Dennis Jones, executive VP and CIO for the FedEx holding company. "With PC prices coming down to where NC prices were a year ago, we may very well choose PCs to serve in a thin-client role."

The decision from FedEx is a blow to Sun, which was hoping to use the deal to validate its JavaStation NC. The JavaStation has been delayed again and again since it was originally announced, and Sun is now saying that it will ship at the end of March, 18 months behind schedule