Microsoft does distribute and will presumably continue to distribute GPL'd software. They provide their customers with the GNU toolchain among other things.

They've been very good Free Software citizens all things considered, of course they're not a Free Software company like Red Hat, but they use, and abide by the terms of the GNU GPL, they provide the source code for the covered software on an open FTP site for anyone to download and they've always been very open about it. Of course the Microsoft VPs talking to the press are always going to say "Free Software is cancer" and such nonsense, but that's the same as when an Pharamaceutical Executive is saying "We need these high prices to pay for R&D". They're not actually stupid enough to believe this spin, and you shouldn't be either.

The Big Pharmaceutical company aren't evil, despite telling some half-truths about the relationship between prices and R&D costs (hint: marketing is also expensive, but unlike R&D it isn't actually saving lives) and Microsoft isn't evil, despite maybe giving people the impression that Free Software is bad, or at least unnecessary, rather than being just as much a part of Microsoft's strategy as anyone else's.