spyware is everywhere. A lot of people have spyware on their pc now, from Kazaa to windows media player in xp. If your that bothered, theres always thing you can do to prvent it.
Microsoft do have a log of pretty much every internet site you\'ve ever been on, which is stored on every persons computer and can only be accessed from MS-DOS. Clearing the history/temporary internet files does nothing to affect this log. This log isn\'t transmitted back to MS, as far as I\'m aware, but I suppose could be used to track computer crime, check for kiddie porn etc. Still, it is an invasion of privacy, and the feature can\'t be turned off (although the files can be deleted)
Wouldn\'t be impossible to moniter though, if the data transmitted to MS was a one off. Think about it, they ask you to register electronically, they are receiving data from every MS computer in the world. They obviously have the capability to do this, but they would not be able to pull it off without people noticing