The too-stupid-to-be-true-iLoo turns out not to be a hoax after all:

“We jumped the gun basically yesterday in confirming that it was a hoax, and in fact it was not,” said Lisa Gurry, MSN group product manager. “Definitely, we’re going to be taking a good look at our communication processes internally.”

It’s a public relations embarrassment for a company famous for micromanaging news releases, interviews and promotional events.

—Microsoft: iLoo No Hoax After AllAP)

What next… will the Iraqi information minister be spotted emerging from an iLoo, and will he announce to the assembled reporters that the iLoo doesn’t exist?