But Dunn, the chairwoman of the board who authorized what HP now calls an “inappropriate” investigation into news leaks, isn’t resigning from the board entirely. She’s merely stepping down from the chair position — and that, only in January.

HP chief executive Mark Hurd will take over as chairman — and get this, even though HP’s own “corporate governance guidelines,” approved by the board, state: “The positions of chairman and CEO are held by different persons.”

As Merc columnist Mike Langberg says, “Mark Hurd needs to explain why this important rule is now out of the window.”

Boards are funny things. Board members get cozy with each other, and they start to explain things away. From the outside, to the rest of us, this seems like some serious fudging, and not the greatest resolution. Inside, though, it probably all looks grey — as we mentioned before.

Meanwhile, Attorney General Bill Lockyer tells the Merc “there’s sufficient evidence to indict people.”