Microsoft admits Windows Genuine Advantage spies on users

"If you've noticed some unexplained traffic on your network every day, it could be Windows Genuine Advantage. As Matt on M-Dollar pointed out last night, Microsoft admitted that the antipiracy tool "phones home" on a daily basis. The software giant characterized the application's behavior as a safety measure designed to ensure that the program doesn't malfunction as it's still a "pilot program. ... Microsoft has not disclosed what information the application is transmitting..." - more

Also see this: http://windowssecrets.com/paid/1089943614/#story1