History of Internet Explorer: Second stage

Version 4, released in October 1997, was shipped with Windows 98 and was modified to integrate more closely with Microsoft Windows. It included an option to enable "Active Desktop" which displayed World Wide Web content on the desktop itself and was updated automatically as the content changed. The user could select other pages for use as Active Desktops as well. "Active Channel" technology was also introduced to automatically obtain information updates from websites. The technology was based on an XML standard known as Channel Definition Format (CDF), which predated the currently used web syndication formats like RSS. This version was designed to work on Windows 95, Windows 98, and Windows NT, and could be downloaded from the Internet, free of charge. It supported Dynamic HTML (DHTML). Outlook Express 4.0 also came integrated into the browser and replaced the aging Microsoft Internet Mail & News product that was released with previous versions.

In September 1998, Microsoft released version 5 of Internet Explorer. Bi-directional text, ruby text and direct XML/XSL support were included in this release, along with enhanced support for CSS Level 1 and 2. The actual release of Internet Explorer 5 happened in three stages. Firstly, a Developer Preview was released in June 1998 (5.0B1), and then a Public Preview was released in November 1998 (5.0B2). Then in March 1999 the final release was released (5.0). In September it was released with Windows 98. Version 5.0 was the last one to be released for Windows 3.1x or Windows NT 3.x. Internet Explorer 5.5 was later released for Windows Me in July 2000, and included many bug fixes and security patches.

Version 6 was released with Windows XP in October 25, 2001. It mainly focused on privacy and security features, as they had become customer priorities. Microsoft implemented tools that support P3P, a technology under development by the W3C.