SCO files for chapter 7 (Groklaw)

Microsoft didn't "decide to settle" with B&N, B&N decided to settle with Microsoft. They dropped their legal defence and agreed to pay Microsoft some unknown amount of money in exchange for Microsoft dropping the lawsuit.

I was one of those people initially thrilled by B&N standing up against Microsoft. I purchased a nook color to use an an android tablet as a result of the news. But I was very disappointed to see them settle a few months later.