Hollywood director James Cameron is well known for his heavy use of special effects and techtastic techniques in his movies, which include “Titanic,” “Aliens” and the first–and best–two “Terminator” blockbusters.

In a few weeks, Cameron is hoping to hit geek gold again with a 3-D sci-fi juggernaut called “Avatar.”

Set to come out in mid-December, it is full of all kinds of fancy and innovative CGI animation.

And the use of blue-colored avatars–essentially digitally animated likenesses of the real-life actors–is a big plot point in the movie, which is about a soldier caught in a war between a greedy mining company and a heroic indigenous tribe on a planet called Pandora.

Here’s one of the trailers for “Avatar”:

And, of course, here is a video of a hysterical recent spoof of the movie done by “South Park”–with a little “Dances With Wolves” tossed in, because it is the same exact plot–called “Dances With Smurfs”:

It’s another packed week for tech, especially in Silicon Valley, where the kibitzing never ends and the econalypse is almost completely ignored.

First up this week is an event today at which BoomTown will appear called “The Free! Summit: Inside the Digital Economy” in San Mateo.

Given all the recent debate about free versus paid, as traditional media companies take aim at the issue, it should be interesting.

I will be on an afternoon panel called “Business Models That Work,” which is about the the future of news and what’s next for journalism in the digital economy.

The other panelists are: Dan Gillmor, Director, Knight Center for Digital Media Entrepreneurship, Arizona State University; Alan Mutter, Adjunct Faculty Member, Graduate School of Journalism at UC Berkeley and founder, “Reflections of a Newsosaur”; and Marshall Van Alstyne, Associate Professor of Information Economics, Boston University and Visiting Professor, MIT.

Later in the day, the event will morph into the third “Tech Policy Summit,” where I get to do a one-on-one interview with Facebook’s Chief Privacy Officer, Chris Kelly, who is still at the social-networking site but is also now running for the job of California’s Attorney General.

(My All Things Digital partner Walt Mossberg will appear on Tuesday, along with a solid slate of speakers.)

On Thursday, ContentNext Media is holding its third EconSm conference, this time focusing on mobile, in an all-day event in San Francisco.

Speakers include: Zander Lurie, CFO, CBS (CBS) Interactive; angel investor Ron Conway (see my recent video interview with him here); Eric Johnson, president and COO, Wolfgang’s Vault; Joe Kennedy, CEO and president, Pandora; and Kevin Thau, director of mobile business development at Twitter.

Wrote paidContent’s Staci Kramer: “Much has changed as we get ready for our third EconSM–including the name. The acronym is still the same but this year it’s about the intersection of social and mobile. Social media has passed the gimmick stage–although not everyone has figured that out–and is part of the daily fabric for an increasing number of people.”

And, if you have even more time, the Aspen Institute has just published J.D. Lasica’s 110-page e-book, “Identity in the Age of Cloud Computing: The Next-Generation Internet’s Impact on Business, Governance and Social Interaction.”

Lasica told me that he wrote the report after a roundtable of 30 experts in identity and technology (people like John Seely Brown and Esther Dyson) was convened in Aspen to discuss the ramifications of the cloud on a societal level.

He talked the Aspen Institute into releasing the e-book under a Creative Commons license, the first time it has ever done that.

And lest you think this is too focused on just Silicon Valley, I missed attending the Seattle 2.0 Awards last week, but here are the winners:

Best Start-up: Picnik
Best Boot-strapped Start-up: Picnik
Best Start-up CEO: Jonathan Sposato (Picnik)
Best Start-up Technologist: Nat Brown (iLike)
Best Venture Capitalist: Matt McIlwain (Madrona Venture Group)
Best Angel Investor: Geoff Entress
Best Start-up Product Designer: Peter Roman (Picnik)
Best Service Provider to Start-ups: Shannon Swift (Swift HR Solutions)
Best Blog from/about Start-ups: TechFlash/John Cook
Best Social Event for Start-ups: Lunch 2.0 by Josh Maher

Microsoft officially rolled out the next version of its Windows Live Services tonight, with a heavy emphasis on socializing its online offerings and giving users better tools to share all sorts of information from across the Web within them.

Microsoft (MSFT) said the changes–similar to those made by Yahoo (YHOO) and Time Warner (TWX) online unit AOL recently–would “begin rolling out to customers in the U.S. over the coming weeks and will be made available globally in 54 countries and in 48 languages by early 2009.”

You might call its the “Facebooking” of Windows Live, which is the brand name for Microsoft’s communications and other related online services aimed at consumers, especially because the much anticipated changes also include a new profile and a “What’s New” feed.

So, if imitation is the most sincere form of flattery, Facebook CEO Mark Zuckerberg should feel beloved by Microsoft, since both are direct borrows of two of the social-networking site’s most prominent features.

(See many screenshots of the newly refreshed Window Live services below.)

But don’t call it a social network, said Brian Hall, who is the general manager of the Windows Live unit, in a lovely breakfast interview with BoomTown yesterday.

“No one wants to sign up for another social network,” said Hall. “But everyone does want to be able to share and bring together all they do on the Web, and we want to make sure all our users can do that in the easiest way possible.”

(Sadly, the video I did with Hall–who is Seth Rogen lookalike, and I mean that in a good way–got eaten up in my new Flip MinoHD software, which was entirely due to my boneheadedness.)

But, in it, Hall underscored that Microsoft is now fully committed to opening Windows Live Services up to whatever consumers want to do with their online lives and wherever they want to do it.

And, indeed, the “next generation” of Windows Live will inject social elements into its Photo Gallery photo sharing, Hotmail email, Spaces groups and Messenger instant messaging offerings, as well as Microsoft’s calendar and mobile products.

The move will also more significantly integrate many third-party partners into the mix. Microsoft’s outside partners announced tonight include Flickr, LinkedIn, Pandora, Photobucket, Twitter, WordPress and Yelp. (See the full list below.)

Microsoft also announced alliances with Hewlett-Packard (HPQ) and China Telecom to deliver Windows Live services.

Microsoft says there are more than 460 million Windows Live customers (its instant messaging offering accounts for a bulk of this number and will see the most socializing impact), but is bowing to the obvious and inevitable trend of consumers creating and sharing all over the Internet.

But, said Hall, Microsoft is also sticking to its mantra of “software plus services” here, noting that consumers want the existing tools they use now regularly to become more social, rather than having to abandon them.

Microsoft is also launching its Windows Live Essentials, which are free widgets that can be used across a range of devices and places, such as personal computers, mobile phones and on Web sites.

Finally, to let users store all that content and information, Microsoft said it is also increasing its Windows Live SkyDrive online storage offering from 5GB to 25GB.

Here are the screenshots of the new Windows Live services (click on them to make them larger):

Windows Live Home Page

Windows Live Profile Page

Windows Live Messenger Page

Windows Live Web Activities Page

Windows Live Groups Page

Partner Integration for Windows Live

Blog
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Reviews
11870.com
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Digg
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Photo
Bilddagboken.se
Flickr*
Photobucket
Rock You
SmugMug

Music/Video
Last.fm
iLike
Break
Pandora
Seesmic
Veoh

Social Networking
Biip.no
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OEM and Services Partners
HP
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Telecommunications and Broadband Service Providers

China Telecom
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FrameIt Partners
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iGala
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*Denotes First Set of Available Feed Partners