While it might be a dream of publishers–hard hit by the digital tsunami and blaming Google for the crisis–Microsoft is not likely to fork over the big bucks they’d need for exclusive indexing of their content.

“Microsoft isn’t the monopoly guy anymore,” joked one source close to ongoing talks between Microsoft and publishers, especially News Corp. and Associated Press. “So, it’s not going to be the bank for publishers.”

That’s because many inside the software giant don’t think such pricey deals will move the search market share needle nearly enough.

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Microsoft’s MSN is in preliminary talks with MySpace about using the social networking site’s music service, MySpace Music, to power music offerings on the giant portal.

While sources at both companies cautioned that the talks are still early, Microsoft–which has its own music site that it programs with original and partnered content–execs are interested in goosing its offering.

That’s because MSN Music consistently ranks substantially lower than other big online music properties in terms of traffic, while MySpace Music is always near the top.

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For the past few months, the Huffington Post has been on a bit of a tear–both in terms of traffic gains and in its hiring of some big talent for key positions.

Now, those execs are focusing on using that consumer momentum to achieve what has eluded the Huffington Post thus far: Making some serious bank from the privately held news and media site.

Here’s a chat I had with new President and Chief Revenue Officer Greg Coleman about how he is aiming to do just that.

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Lonely Planet, best known as a traditional travel guidebook publisher, is announcing a new U.S. head tomorrow–John Boris of Zagat Survey–as it increasingly moves to reposition the company as much more of a “cross-media” platform.

As the paid versus free content online debate gets louder over the next year, how well known brands like Lonely Planet–which has a strong reputation among consumers–handle the fallout will be more and more interesting to watch.

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In a week, the entire advertising sales staff of MySpace will gather at a swanky new seaside resort about 20 miles south of Los Angeles to get a first glimpse of the fresh direction the company is preparing to take under its new management.

The beleaguered social networking site has been in the midst of an effort to reinvigorate its image, spur innovation in its product and–most of all–pull itself out of a too-long slump, even as longtime rival Facebook has seen explosive growth.

On the possible agenda: A new strategy aimed at music and entertainment; a new look; and, perhaps, a new boss for the ad sales team.

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Here’s a lovely video BoomTown did last night at our All Things Digital annual BBQ, at which the crackerjack team at our little rogue operation inside Dow Jones goes analog, gnaws on some ribs and trades tech tales.

Last night, of course, much of the chatter was about what went down at the Apple event in San Francisco yesterday, at which CEO and Supreme Leader Steve Jobs made a grand reappearance onstage after a liver transplant.

Walt Mossberg and Digital Daily’s John Paczkowski were there and give their spicy reports.

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Longtime Yahoo exec Brad Garlinghouse’s appointment to a new job at AOL today is yet another sign of an interesting trend for those keeping score of the comings and goings of top Internet execs.

As anyone who watches the digital space knows by now, this kind of management musical chairs is common and never-ending, although it seems more frantic than ever of late.

In fact, borrowing a quote by IAC/InterActiveCorp chairman and CEO Barry Diller from an onstage interview I did with him at the sixth D: All Things Digital conference, and switching out Hollywood for Silicon Valley: “[It] is a community that’s so inbred, it’s a wonder the children have any teeth.”

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Linda Avey, co-founder of 23andMe, the personal genetics start-up, will be leaving to start a foundation related to Alzheimer’s disease.

With Anne Wojcicki, she founded the high-profile company–whose Series A investors include Genentech, Google, and New Enterprise Associates, as well as Wojcicki’s husband, Google co-founder Sergey Brin–in 2006.

Avey noted in an email to staff, which is posted in its entirety below: “I also recognize that the company has reached a critical point in its growth where new leadership can take it to the successful heights we all think it can achieve.”

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If you want to get Hollywood movie studio types irked, mention Google. And if you want them steamed, bringing up Netflix will usually work.

But if you want to see the tops of their heads blow off, Redbox is just the ticket.

Except not to their movies, it seems, if the major movie studio execs have their way in an ever-growing legal battle with the DVD-rental kiosk company.

A typical consumer named Louie Swisher, though, begs to differ.

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Wenda Harris Millard–calling in to BoomTown HQ from a cruise either on the way to or the way from Slovenia, since she said she was not exactly sure, given that it was the middle of the night there–wanted to make one thing clear:

She is still working for her other dozens of clients at Media Link as its president, but also has a big new gig helping MySpace get its advertising sales house in order, especially related to strategy and execution.

“I guess it’s a matter of semantics, but I will be leading the engagement,” said Millard. “But we have a whole team here too, and I am also still working for all our great clients.”

Okay, people?!? Which is, in Slovenian, in case anyone asks there, Wenda: Vidirati narod?

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In a move that will surely have Madison Avenue talking, well-known online advertising sales executive Wenda Harris Millard–who is now president of New York- and Los Angeles-based media consultancy Media Link–is poised to take over all advertising sales at MySpace, sources said.

But, in an unusual twist, the former Yahoo and Martha Stewart exec will remain in her job at Media Link, which has also been hired by MySpace to advise on restructuring the social networking company’s salesforce.

Current President of Sales and Marketing Jeff Berman will be leaving the company, MySpace has told employees via an internal memo.

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Yesterday–in a somewhat rambling and also riveting blog post about charging for content–serial entrepreneur and perennial gadfly Mark Cuban made a very important point that execs at every large media company should take to heart as they try to cope with the digital challenge.

Use your noggins, why dontcha?

He also threw out some very good ideas for doing so.

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Here at All Things Digital, we are always fussing away on our site, making a variety of improvements regularly to make the experience better for our readers.

In that vein, we have recently added two new features over the last weeks, which deserve a look-see: Topic pages and job listings.

Check them out.

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Over the last weeks, News Corp. Chief Digital Officer Jon Miller and MySpace CEO Owen Van Natta have had their hands full directing massive layoffs at the flagship social-networking site, as well as throughout the Fox Interactive Media division.

The pair discussed the many challenges faced by the giant media company in its digital enterprises in an onstage interview at the seventh D: All Things Digital conference last month.

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The layoffs at Fox Interactive Media moved on to Photobucket today, as one-third of its staff of about 120 were let go, sources close to the situation said.

The photo- and video-hosting service was bought for $250 million in mid-2007 by News Corp.

A FIM spokesperson confirmed the layoffs after being contacted by BoomTown, but declined to give specific numbers. But sources told me a total of about 75 people were fired.

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