Sun Sues Microsoft..

Why is most people so absolutely clueless when it comes to business practices and common sense?

Point 1, Sun suing MS to stop breaking Java: This is being going on since 1997, MS has dodged the bullet by removing java, renaming their JVM, removing the Sun license disclaimer (Which a violation of the sun license), but never, even when the courts imposed it, fix the mess they made.
Point 2, Java is (c) 1995-2001 Sun Microsystems: So stop whining about it, C# being a derivative of many languages is basically uncopyrightable or patentable. You don't like Java because it comes from sun and if you use a sun you need to use your brain and not point-click-crash? Good, please don't use that as an excuse.
Point 3, Companies protecting their rights: Sun has the rights to sue everybody who breaks, steals, willingly and sevretively modifies or tampers with it's property. Java didn't happen overnight, sun didn't stumble into another company to buy it or found it on the ground.
Point 4, What MS did: It was anticompetitive (Because it breaks a standard to falsely portray a platform, much like ATi did with the ultraoptimized Q3 drivers, for which you guys gave them hell), predatory (FOr the same reasons mentioned before) and shows a willingness to leverage a monopolistic position (Almost absolute control over the desktop) to destroy a competitor.

And please, refer to the definition of monopoly: It doesn't exclude competitors, it does involve an almost absolute control of the marketplace. With no competitors you're referring to an Absolute Monopoly which is a completely different economic and business case.

That is one misleading quote right there:

"It is ironic that we spent three years in litigation with Sun over their attempt to stop us from shipping Java in Windows, and now they are complaining that we are not shipping it by default in Windows XP," said Jim Cullinan, Windows XP lead product manager."

Sun was suing Microsoft for shipping a modified/broken implementation of Java. Sun wants everyone to use Java, but they don't want people like MS to fracture it, thus defeating the whole write-once run anywhere point behind Java.

anyone remember why sun wanted ms to stop using java?

because ms changed java to include windows-specific features/calls, thus breaking java's cross-platform compatibility and violating the sun java license agreement.

sun settled things with ms, ensuring ms not tampering with java.

with winxp ms has stopped using sun java and is using it's own version, which they obtained by abusing the license.

so sun is now asking to (also) include their java with winxp, probably to try and get a fair chance on a market that they created in the first place.