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If you've ever wondered about the value of the updates that Microsoft releases, we only have to stop and think about the problems caused by the MS.Blast worm that would have been completely avoided if people had installed the Windows updates that Microsoft provides. The worm caused problems on tens of thousands of computers all over the world but would have had no effect if everyone had installed the critical updates.
Over all, Microsoft has been getting better in the past couple of years in telling people about problems that they (or others) find in their software. Lawsuits have a way of making honest people! If they tell you there's a problem with the software, believe them and let them give you the free fix. It's for your benefit!
The only ones who can't get those free updates are the ones who are using an illegal copy of Windows and, to be honest, they deserve to get hit!
So be sure to install the updates when you're told about them.