The tale of Hammerhead Systems — A Cisco competitor, it got as far as inking deals with major telecommunications companies during its seven-year run, but now it’s closing up shop. It had received more than $110 million in funding and promised superior routing technology. The San Jose Mercury News has a closer look at what went right and wrong.

MySpace to offer Windows Mobile application — And it’s also going to support Microsoft’s Silverlight developer framework on its developer platform.

Google China begins mp3 music licensing dealMore from Reuters.

Web ads grew in 2008, kinda
— MediaMemo has more on the latest IAB report.

Associated Content gets new chief executive — Patrick Keane, a former CBS Interactive and Google executive is joining the pay-per-article aggregator. PaidContent has more.

Report says YouTube will separate premium videos from user-generated content — That’s according to what sources tell ClickZ, details here.

Teen virtual world Habbo made $74 million last year — Off of virtual goods and advertising, according to TechCrunch. That’s not a record for monetizing virtual goods (see China’s Tencent), but it’s not bad.

Microsoft settles lawsuit with GPS car navigation maker TomTomMore on Techmeme.

[Hammerhead photo via The San Jose Mercury News.]