Microsoft Windows XP Update Spies On Other PC Software?

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Thanks to Voodoo @ Neowin.net for the news update. A report on a German site claims that Microsoft extracts more information from a person's PC when the update Windows facility is used running the WinXP operating system. According to tecCHANNEL, it has deciphered which data is transferred to Microsoft Central whenever you connect to its update web site.