Ken Moss, General Manger of MSN Web search has published a blog article: Privacy and MSN Search where he attempts to justify Microsoft's position over the request by the US Government for data in relattion to child porn. I will not go into detail here on this (you can Google for the details! or see here for my earlier take on this issue).
As you can see from the comments on the MSN blog, most contributors do not take kindly to MSN's actions. There are a few pro-MS comments (some curiously anonymous, and possibly astroturfed), but most are pretty negative. No matter how Ken spins it, Microsoft has lost some trustworthy points over this.