The new browser wars on on. More than a decade after Microsoft killed off Netscape with Internet Explorer, competition in the browser market has never been stronger. Just last week, Mozilla released Firefox 3.5, which has now been downloaded nearly 14 million times. Earlier in June, Apple released Safari 4. In March, Microsoft introduced Internet Explorer 8, and Google came out with a speedier beta of its Chrome browser.

Some early data is coming in showing relative market share and how fast people are upgrading. If you look at the chart above from Statcounter, it indicates that since March Internet Explorer has lost 11.4 percent market share to other browsers.

In the first 24 hours since its release yesterday, Firefox 3.5 has been downloaded more than 5 million times. (It took only a few hours to pass a million). That is certainly respectable, but doesn’t quite measure up to the mania that Firefox 3.0 set off last summer, when it achieved a “world record” 8.3 million downloads in a single day. Maybe we’ll have to wait for Firefox 4.0 to beat that record. But Firefox 3.5 might still beat the 11 million downloads Safari 4 got over its first three days of availability.

Did you know you can switch tabs in Firefox by making a twisting motion with your fingers on a multi-touch surface? I did. Turns out I’ve been doing it for months — I thought I was late to the party and was too ashamed to mention it to anybody for fear of an epic internet ribbing (”What, you just figured that out?”). But no, apparently it was top secret and highly experimental. That was in the beta, though; it looks like the official version has reduced it to a hack.

Fortunately, mastering this multi-touch-enabling technique will allow you to tweak your gestures, resulting in everlasting glory.

Mozilla today released Firefox 3.5 into the wild. Not surprisingly, it’s flying off the virtual shelves. And unlike when Mozilla released Firefox 3.0 last year, its servers are staying up and reliable, so the rate of downloads is pretty incredible. This site, run by Mozilla, shows the download stats for the new browser. Overall downloads are now approaching 1.3 million worldwide, with over 350,000 of those in the U.S. But even more amazing is the number of downloads occurring each second, it’s ranging from 59 to 95 right now. Again, that’s every second.

Outside of the U.S., the browser is moving quickly in Germany, France and the UK. The claim is that it’s much faster than the previous iterations of Firefox, and based on just a quick run-through of my favorite sites, I’d say that is in fact the case. Though, to be fair, it’s hard to know if that has something to do with the fact that just about all my browser plugins are not yet working with this version.

Yesterday, we poked fun at Microsoft’s tacky $10,000 online treasure hunt to get people to use IE8, at the domain TenGrandIsBuriedHere.com. We were hardly the only ones. Today, a developer at Mozilla, makers of IE rival Firefox, weighed in with his own way of mocking Microsoft: TenGrandIsBuriedThere.com.

The site is simply a Google Map zoomed out to a certain point. If you zoom in enough, you’ll find a surprise. The developer took exception to Microsoft calling Firefox “old” on its site. That is a bit odd since IE is much older than Firefox.

Mike Beltzner, the director of Firefox, was in New York City today and dropped by my office to talk about Firefox 3.5, which is now officially being rolled out as a “preview” version (a very stable beta) to everyone using the current 3.5 beta. Firefox 3.5 is supposedly much faster than earlier versions, which is always a good thing. Honestly, the nanosecond speed differences between most of today’s latest browsers is becoming hard to detect. Three features of Firefox 3.5 which stand out for me are: 1) its embrace of open-source video standards, 2) its geo-location capabilities, and 3) support for downloadable fonts and other graphic tricks.

Mozilla has unveiled a new project from its Labs division called Jetpack that gives us a taste of how Firefox might begin extending web functionality in years to come. While the project is still quite early in development, it seems to be taking the form of a streamlined extension system, allowing web developers to introduce new features to the Firefox browser using web-based tools and requiring only a minimal amount of effort on the user’s part.

Firefox extensions have long been one of the best parts of the browser, allowing users to add and remove features to suit their needs. But while the user experience of installing these has been relatively straightforward, it still requires a browser reboot, which can be frustrating when you’re in the middle of something. With Jetpack, this isn’t an issue - you click install and you’re done, with the new widget or application installed a few seconds later.

After the slightly shaky launch of their ultra-early milestone one release, Mozilla is back with more Fennec (otherwise known as “Firefox Mobile”) goodness. This morning, the company began distributing Alpha 1 of Fennec for Windows Mobile. As with all Alphas, this release is by no means intended for every day use by the general public, but it gives us a sneak peak at what’s to come.

Chrome is a great browser for Google’s web apps because its JavaScript engine is optimized to run most of them as fast as possible. That alone is reason enough for heavy users of applications like Gmail and Google Reader to use Chrome (if you have a PC anyway — the Mac version is still forthcoming). But Google may also be giving another small advantage to those who surf the web on Chrome: The ability to see new features early.

Earlier tonight we received a tip with the screenshots below. As you can see, Google Finance has a brand new interface when browsed to with Chrome versus in Internet Explorer and also Firefox (not pictured). It would seem that Google may be checking for the Chrome user agent and giving those users a glimpse at this new version of Google Finance.

Location-based services haven’t yet caught fire, but location itself is increasingly finding its way to web services as a complimentary feature. The latest to use it is the Google Toolbar. If you have it installed, and open Google Maps, it will now auto-center on your location.

That’s a small, but useful feature, but the ramifications of this move are potentially much large. This adds location capabilities to the millions of people who have Google Toolbar installed. You may be thinking that a lot of those users with the latest version of Firefox already had it — but this feature is for Internet Explorer only right now. That, combined with Mozilla’s use of its Geode location plug-in (which again, is built into the latest version of Firefox), puts location on a good percentage of browsers in the world.

Today, Mozilla Labs released the 0.3 version of Weave, its project that syncs multiple browsers in the cloud. Weave lets users sync their bookmarks, tabs, passwords, and histories in the cloud across Firefox browsers on different computers. With today’s release, you can also sync with Fennec, Firefox’s mobile browser, which unfortunately right now only works on one kind of phone: a Nokia N810 Internet Tablet. Yeah, I don’t have one of those either.

But the idea of syncing your browsers is a powerful one for anyone who uses more than one computing device on a regular basis. Originally launched in December, 2007, Weave is now faster and more reliable. In other words, now it actually works (or so I’m told).

The one thing Weave doesn’t sync is all of your add-ons. But that is planned for a future release.

Mozilla Labs is debuting new personas today - extensions that add lightweight themed skins to your Firefox browser - enabling you to personalize your user experience according to your mood without interrupting your browsing sessions. The Personas for Firefox add-on was first introduced in late 2007, but has now expanded to include hundreds of artist-created designs in a variety of categories, according to a blog post announcing the new sets.

I like custom skins / themes and the fact that Mozilla is taking steps to make it easier for people to adjust the look and feel of their browser according to their mood, but somehow the announcement made me cringe a little (much like this Labs experiment did). I would rather see Mozilla focus on improving the speed and usability of its browser than offering its users ways to add eye candy, particularly now that the browser wars are heating up again. Firefox needs more innovation, not decoration. But then that’s just me. Some people love eye candy more than speed.

Mozilla Labs is experimenting with a design for a new tabs page in the Firefox browser that will show a circle of the top sites you visit that is reminiscent of the circle of friends design you see on many mobile phones. (Except, who needs friends, when you’ve got the Internet?) When you open a new tab, instead of a blank page, you would see a watermark of icons representing the eight or so sites you visit most often. By mousing over the circles, the the tab page would fade into the actual links.

This is just a concept design, but using that blank page when a new tab opens up makes sense. Aza Raskin of Mozilla Labs calls the watermark a”cognitive shield” because it is supposed to protect users from the clutter of all the links unless they explicitly mouse over the watermark. Also, it doesn’t appear if you start typing something into the address bar. He says he is considering making the circles themselves clickable, which would be more intuitive and eliminate a step. Giving users the ability to customize which sites show up in the circle would also be helpful.

The add-on only works on the development build of Firefox 3.1 right now, and may or may not find its way into a future general release.

The mobile version of the Firefox browser, Fennec, is now officially in beta. It works only on the Nokia N810 Internet Tablet, but developers can also download it onto their computers. The Fennec browser is designed to make maximum use of the limited screen space available on mobile phones and tries to do everything possible to minimize typing.

It incorporates the Firefox “awesome bar,” which acts as both navigation and search bar. Start typing in a URL or search term and it auto-suggests web pages based on your past Web surfing habits. Various searches, including Google, YAhoo Answers, and Wikipedia, are one click away via links at the bottom. The browser also remembers all your passwords, just like Firefox. It supports Flash. And add-ons can be created for the mobile browser.

The user interface takes some zooming and panning concepts which were previously previewed by Mozilla Labs. Each Web page expands to fill the entire screen, but moving the page to the side reveals different controls, including bookmarks, back and forward buttons, tabs, and different tools.

Representatives from Microsoft (Dean Hachamovitch), Opera (Christen Krogh), Mozilla (Mike Shaver) and Google (Sundar Pichal) met at the Churchill Club in Silicon Valley tonight for a panel called “Browsers are Hot Again!”, moderated by Businessweek columnist Steve Wildstrom.

The event is timely. There has never been such robust competition in the browser space. Google recently brought Chrome out of beta, and Microsoft’s GM of Internet Explorer Dean Hachamovitch told me earlier today that the Release Candidate of Internet Explorer 8 would be released in the next two weeks.

Notably absent from the panel was Apple, although their Safari browser was brought up repeatedly as an important mobile platform, and Safari’s underlying Webkit javascript engine was also praised as innovative.

In other Mozilla news, Firefox hit a major milestone today with the one billionth download of add-on software for the browser. That feat took three and half years.

Many of those downloads are never used more than once or twice, of course. But there is no doubt about it that Firefox is major software platform. Just look at StumbleUpon, it was built on top of Firefox.

Juice, a Firefox browser sidebar developed by Linkool International, has launched to the public. The powerful plugin automatically culls information from around the web whenever you search for or highlight a term, making it a handy reference tool that I could quickly get used to. It also doubles as a media storage tool, allowing you to simply drag and drop videos and image files into the sidebar to save them for later.

Juice pulls from sources including Wikipedia, Google News, YouTube, and our own CrunchBase (through its API) to offer users a quick at-a-glance summary of many popular topics. The sidebar is very polished, allowing for in-line video playback and expandable text summaries, and the media storage function is intuitive.

eBay launched a new browser extension tool today that lets you highlight different products in Firefox or Internet Explorer and compare the pricing of those products on eBay. The tool also includes Skype functionality, which will let you click on a number in your browser and call it directly via Skype.

Dubbed Browser Highlighter, eBay’s latest tool will run only on Windows machines for now, but will eventually be rolled out for Macs and Apple’s Safari browser in the coming weeks.

After installing Browser Highlighter, a small icon is placed to the right of the address bar in Firefox or Internet Explorer. When you click the icon, you have the option of turning the “Compare on eBay” function, as well as the “Skype Phone Number Recognition” tool on or off. When either one or both are turned on, the information you search for in the browser becomes an interactive space to compare the price of products on eBay or make phone calls with Skype.

At one time, it was tough to cover your tracks after visiting some, uh, questionable sites, but now it’s getting easier than ever. According to Mozilla, Firefox is joining Safari, Internet Explorer 8, and Google Chrome in providing its users with a “private mode” that will not collect any of your browsing history or cookies in the upcoming release of Firefox 3.1.

Much like Chrome, users will be able to open a separate window in Firefox 3.1 that will let them browse the Web in any way they see fit without worrying about the wife or kids entering the History menu and seeing why they spent the last hour in the office with the door locked.

Even though the drama surrounding Microsoft’s Yahoo acquisition has subsided, it looks like there’s still some bad blood.

A tipster yesterday sent us a screen shot of Yahoo’s front page running on Internet Explorer with a Firefox recommendation sitting atop the page. “Yahoo recommends upgrading to the NEW safer, faster Firefox 3,” the ad says.