* THE GAO says the FCC is unprepared for the digital transition.
* NBCU to offer content on Fanfare and HD downloads via Direct.
* PENTHOUSE buys social-net AdultFriendFinder and more.
* AT&T drops DIRECTV, keeps ECHOSTAR, pumps U-verse.
* MTV NETWORKS forms one-stop-shop Digital Fusion.
* NATAS forced to scale back Broadband Emmy's.
