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Microsoft iLoo - the world's first computer-enabled portajohn

Reportedly a high-tech portajohn complete with a plasma screen, wireless keyboard, and toilet paper with URLs printed on it, the Microsoft iLoo was dismissed as a hoax by the company originating from their British division. After Microsoft's public relations company revealed that Microsoft really was working on it, Microsoft reversed and said it was just an idea that was rejected at the Redmond, WA headquarters.

More on the hoax is available from Urban Legends Reference Pages.