The federal judge conducting the Microsoft antitrust trial has set a schedule for rebuttal and closing arguments that will likely delay his ruling in the closely watched case until late autumn.

The longer-than-expected timetable was issued as lawyers for Microsoft, the Justice Department and 19 states indicated that they would continue talks to settle the government's lawsuit, which alleges that the company has illegally bullied competitors to protect the dominance of its Windows software.

The lawyers conducted their first settlement discussions on Tuesday night, in a two-hour session that sources described on Wednesday as cordial. The meeting served as an opening conversation and did not include direct negotiations.

The sources also said that the two sides, which remain far apart on key issues, plan to hold another meeting, but no date has been set.