A report on tecChannel, a German website, claims that the Microsoft Windows Update site extracts more information from a person's PC when the update Windows facility is used running the WinXP operating system.

And, the site claims, the information can pass on to Microsoft a list of all of the software installed on an individual's computer, including software manufactured by other manufacturers.
According to tecCHANNEL, this information is more extensive than is necessary for the purpose. The site said Microsoft has not yet replied in detail to its concerns about passing sensitive data.

Source: The Inquirer.