Microsoft confirmed today that Proxy Server 2.0, their Internet proxy software, has been delayed so that the product can more ably compete with NT firewall products. Firewalls are designed to block hackers and other intruders from getting into a company's internal network from the Internet. Microsoft is reconfiguring Proxy Server 2.0 so that additional firewall software is not needed. Proxy Server 2.0 will allow for packet filtering and will offer access security when combined with Microsoft's "Steelhead" routing software. The first public demonstration of Proxy Server 2.0 is expected this week at the European TechEd conference. Originally slated for a July release, Proxy Server 2.0 is now expected in late August