CNET posted part two of their Steve Ballmer interview

NEW YORK--While Microsoft showed off Windows Phone 7 yesterday as its answer to the iPhone, many are still wondering what the company's response will be to the iPad.
CEO Steve Ballmer has noted on several occasions that there will be some Windows 7 slates this year, but that's not the answer to the question--Microsoft has had tablets for years. The real issue is how Microsoft plans to respond to the iPad's instant-on abilities, it's long battery life, and the fact that it's easily navigated with just a finger and no need for a keyboard.

  Ballmer on tablets, PCs and more