Microsoft has released the second beta (testing) version of its Internet Explorer 8 web browser, demonstrating many of the new features that users can expect from the final version.

IE8 Beta 2 has many new features including an InPrivate mode that, when enabled, stops the browser from recording which sites are visited.

An additional InPrivate Blocking tool allows users to limit where information is transferred during the browsing session.

Other security features include an automatic filter to prevent cross-site scripting (XSS) attacks.

Besides security, most of the new features have been designed to limit the number of clicks required when performing common tasks.

A new Accelerator Menu appears when text is highlighted on the page, allowing it to be quickly sent to another website; highlight a postcode, for example, and it can be sent to Google Maps. The secondary website appears in a small browsing window above the current page.

Similar interactive elements have been added to the browser’s search bar, which now displays live results in a dropdown menu when searching supported websites, and in the Webslice tool, which allows the user to store a miniature version of supported web pages in the toolbar for easy access.

Several major websites, including Ebay, Facebook and Yahoo are already offering services tailored for the new browser.

“As people are using more and more other services, being in the browser is key to making sure that we engage with users,” said Ebay’s Cian Weeresinghe.

Despite the welter of new features, there are areas where IE8 seems to be simply catching up with features already present in rival products. Just as a mode similar to InPrivate can already be found in Apple’s Safari, the new beta includes a phishing and malware filter that blocks access to suspect sites and a keyword-searchable address bar similar to those included in Firefox 3.

When asked whether he expected Internet Explorer 8 to have an effect on Ebay users’ choice of browser, Mr Weeresinghe was cautious.

“I think users are choosing browsers based on a whole host of other functionality,” he said.