Microsoft has begun patching files on Windows XP and Vista without users' knowledge, even when the users have turned off auto-updates.

More at: http://windowssecrets.com/2007/09/13/01-Microsoft-updates-Windows-without-users-consent

My comment on this subject:
This is not new for me at all, once windows xp was downloading a newer version of msn without my knowledge (windows update is disabled on my system). I realized that when i noticed my network traffic usage rise at the time that all applications were closed. First i thought someone hacked me and he/she was transfering my pron then ethereal showed me the real "attacker", akamai/microsoft.

Note: microsoft use akamai to distribute their files.

How exactly is M$ essentially controlling these machines remotely? Is it via the AU service?

Disable the service and delete its files, and I'll be damn surprised if they manage to come back. (My system has never had AU running, so I'm not surprised that nothing of this sort has happened.)

I just don't trust M$ that much.

You mean Automatic Updates service ("AU"?

But you trust Microsoft enough to use their software anyway.

For some its not a choice.

The software I use every day runs under Windows. WINE doesn't cut it, I've tried...

That said, I've left myself in the computer dark ages specifically because I don't trust the maniac in Redmond. I'm still running Win2k SP4 with as much of the nonsense turned off, my desktop only shows 18 active processes when its idle.

XP has some nice features, and I'm happy to use them in a VM that is completely prevented from accessing network resources (and the internet).

If you have MAC you can try "CrossOver Mac" @ http://www.codeweavers.com/products/cxmac/

Yes. I don't mean Australia.

To me, if their software isn't connecting to the Internet without my knowledge, I don't feel as if my privacy is compromised.