According to a report at The Register, Eric Howes - a spyware researcher - has confirmed reports that Microsoft AntiSpyware has downgraded Claria's adware from a recommended action of "Quarantine" to a lower level action of "Ignore". Screenshots posted by Howes at Broadband Reports confirm this.

In the full-sized screenshot, it appears that Claria's GAIN, DashBar, DateManager, and Trickler applications are the ones being rated as software which can be safely ignored.

In the lengthy thread of comments on the Broadband Reports posting, the universal sentiment is that this is serious miscalculation on Microsoft's part - a reaction I completely agree with. It would appear this change was actually made back in June, not in the most recent update as was originally reported. Microsoft has to know that the general public, trusting them to provide good advice in this tool, will accept the "Ignore" recommendation and allow the Claria adware onto their systems.

I predict the backlash on this decision will be loud and sustained. Two steps forward, one back.

UPDATE: There's a raging discussion going on over at SlashDot (is there any other kind of /. discussion?
UPDATE 2: eWEEK has more on this story.
UPDATE 3: The MS AntiSpyware team responds with an open letter.
UPDATE 4: Dan Gillmor remains unconvinced,