eggsovereasy writes "The Inquirer is reporting that a group in Germany has deciphered the information sent to Microsoft during an update using Windows Update and says that information on all software installed on your computer is sent, even that which is not Microsoft's own software." The original article is, unfortunately, pay-per-view. Update: 02/26 18:19 GMT by T : ionyka points to this "related article from ITWorld that deals with Microsoft's transferring of information through Windows Media Player. When you open up Media Player it sends information back to Microsoft like what movies you play, what songs you listen to and where they come from."
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