<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-03-13</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0000818813</issuerCik>
        <issuerName>BITSTREAM INC</issuerName>
        <issuerTradingSymbol>BITS</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001429608</rptOwnerCik>
            <rptOwnerName>Stedman Trent</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE, SUITE 350</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001429618</rptOwnerCik>
            <rptOwnerName>NV North American Opportunity Fund</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE, SUITE 350</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001363688</rptOwnerCik>
            <rptOwnerName>Millennium Group LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 350</rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND PARK</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001429610</rptOwnerCik>
            <rptOwnerName>HPP GP LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE, SUITE 350</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001429609</rptOwnerCik>
            <rptOwnerName>Highland Park Partners Fund LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE, SUITE 350</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Class A Common Stock, par value $.01 per share</value>
            </securityTitle>
            <transactionDate>
                <value>2008-03-13</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>30000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>4.86</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>964462</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Class A Common Stock, par value $.01 per share</value>
            </securityTitle>
            <transactionDate>
                <value>2008-03-14</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>6500</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>4.90</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>957962</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">On March 13, 2008, NV North American Opportunity Fund sold 23,000 shares of Class A Common Stock and Highland Park Partners
 Fund LP sold 7,000 shares of Class A Common Stock.  On March 14, 2008, NV North American Opportunity  Fund LP sold an
 additional 5,000 shares of Class A Common Stock and Highland Park Partners Fund LP sold an additional 1,500 shares of Class
 A Common Stock.</footnote>
    </footnotes>

    <remarks>(1)  NV North American Opportunity Fund directly beneficially owns 746,862 shares of Class A Common Stock.  Millennium Group
 LLC is the investment manager of NV North American Opportunity Fund.  Highland Park Partners Fund LP directly beneficially
 owns 208,900 shares of Class A Common Stock.  HPP GP LLC is the general partner of NV North American Opportunity Fund.
 Trent Stedman directly beneficially owns 2,200 shares of Class A Common Stock in a personal trading account.   (2) Trent
 Stedman is a member of Millennium Group LLC, the investment manager of NV North American Opportunity Fund.  Trent Stedman is
 also the sole member of HPP GP LLC, the general partner of Highland Park Partners Fund LP.  Trent Stedman, by virtue of his
 relationship to NV North American Opportunity Fund, Millennium Group LLC, Highland Park Partners Fund LP, and HPP GP LLC,
 may be deemed to indirectly beneficially own (as that term is defined in Rule 13d-3 under the Act) the shares of Class A
 Common Stock owned by NV North American Opportunity Fund and Highland Park Partners Fund LP.   (3) The percentage of
 beneficial ownership of 9.89% (or 957,962 shares of Class A Common Stock) is based on the following:  (i) 10,041,320 shares
 of Class A Common Stock were outstanding as of November 5, 2007 (as set forth on the Issuer's Form 10-Q, filed on November
 14, 2007 with the Securities and Exchange Commission); (ii) on January 3, 2008, George B.  Beitzel, who serves as a director
 of the Issuer, exercised his option to acquire 50,000 shares of Class A Common Stock  (as set forth on a Form 4, filed by
 George B. Beitzel on January 7, 2008 with the Securities and Exchange Commission); and (iii) during a March 3, 2008 earnings
 call, Issuer announced that it had repurchased 410,000 shares of Class A Common Stock.</remarks>

    <ownerSignature>
        <signatureName>/s/ Trent Stedman</signatureName>
        <signatureDate>2008-03-17</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>NV North American Opportunity Fund By:  Millennium Group LLC /s/ Trent Stedman, Member</signatureName>
        <signatureDate>2008-03-17</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Millennium Group LLC /s/ Trent Stedman, Member</signatureName>
        <signatureDate>2008-03-17</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Highland Park Partners Fund LP By: HPP GP LLC  /s/ Trent Stedman, Sole Member</signatureName>
        <signatureDate>2008-03-17</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>HPP GP LLC /s/ Trent Stedman, Sole Member</signatureName>
        <signatureDate>2008-03-17</signatureDate>
    </ownerSignature>
</ownershipDocument>
