The FAQ for Windows 7 RC on the Microsoft download site states that there is no need for users to report to Microsoft on their experiences in using W7RC because it collects a variety of data and automatically sends it back to Microsoft for analysis (MS refers to this as "Telemetry).

http://www.microsoft.com/windows/windows-7/faq.aspx

The Windows 7 RC Privacy Statement is the usual boilerplate that says Microsoft can use this information for just about anything it wants, and can change the rules just by posting updates on its web site. A supplement provides a long laundry list of details and links on specific items that would take a good size law firm to fully analyze, but I did not see any explicit summary of the information collected nor any indication as to whether it is possible to turn off this "feature" altogether.

This sure sounds like spyware to me.

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