I am disappointed in Microsoft for its Windows Genuine Advantage program, which appears to fit the definition of spyware. It is a breach of trust from the "trustworthy computing" company.
The best place to start to learn about this terrible initiative is Brian Livingston's great article in his Windows Secrets Newsletter.
I will be in touch with my clients regarding appropriate next steps. Others should ask their systems administrators for their best advice on this matter.
This is a very sad turn of events.