Following the beta 2 release of Internet Explorer 8 (IE8) this week, users and developers alike can now test its added security features and functions designed to serve web content in new and interesting ways.

But there are concerns that the new browser may hit compatibility problems and cause headaches for web sites trying to track customer behaviour.

IE8 is designed with better support for web standards than has been the case with earlier versions of Microsoft's browser.

While this is generally recognised as a good move on the software giant's behalf, it means that web pages optimised for IE6 and IE7 may not display well in the new version.

Ryan Servatius, Microsoft global strategy and partnership manager for IE8, said the new version is compatible with the Acid2 test, regarded as the gold standard for web interoperability.

But he said it also must also be able to handle older web sites designed to work with some of the quirks of earlier IE versions.

"So many users are on IE, we need to embrace standards and make it compatible with previous versions as well," he said.

By default, IE8 will render in the most standards-compliant way possible. For users, this means that some web sites may not display correctly in IE8.

Microsoft is addressing this with a Compatibility View button that will switch the browser to render a page as it appeared in IE6 or IE7. This leaves the decision in the hands of users, who may not be aware of the function or unsure about using it.

"I wonder how much the average user will make use of that feature," said David Mitchell, senior vice president of research at Ovum.

But Mitchell said it is likely there will be fewer problem pages encountered than people might expect, partly because of the growth of rival browsers such as Firefox, which have already driven greater adoption of standards.

The new privacy features in IE8 could also turn out to be a double-edged sword – they are likely to prove popular with users, but could be problematic for some web sites.

For users, an InPrivate mode prevents cookies, browsing history, or other data from being retained by the browser, so there is no trace of any sites the user may have visited.

This would benefit business travellers if they accessed their company email from a public web kiosk using IE8, for example.

Another feature, InPrivate Blocking, gives users control over whether information about them is shared with third-party web sites.

This often happens when syndicated content or adverts are displayed on the sites users visit. While this feature is designed to protect privacy, it could upset many legitimate users of web tracking.

"The biggest potential impact is on click-through adverts. If sites rely on pop-ups or scripts, IE8 is going to block them, and ad volume may suffer as a result," said Mitchell.

If use of this feature became commonplace among surfers, companies reliant on ad revenue might be seriously affected, he added.

Microsoft said that InPrivate Blocking is an "opt-in decision", which users will need to turn on for it to function.

Because of this, Mitchell said the risk of it becoming commonplace is " fairly low", but this might change if a high-profile incident creates another climate of fear over internet security.

Microsoft has also added features to make IE8 easier to deploy and manage for corporate customers.

The software can be "slipstreamed" into a Windows Vista or Windows Server 2008 image rather than being installed separately, while new Group Policy settings enable administrators to configure some options such as security settings after deployment.