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Microsoft Windows Defender
Windows Defender is a free program that helps protect your computer against pop-ups, slow performance, and security threats caused by spyware and other unwanted software. It features Real-Time Protection, a monitoring system that recommends actions against spyware when it's detected and minimizes interruptions and helps you stay productive. Now with 2 free support incidents for Windows XP and Windows Server 2003.
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What is spyware?
Spyware is a general term used to describe software that performs certain behaviors such as advertising, collecting personal information, or changing the configuration of your computer, generally without appropriately obtaining your consent first.
Spyware is often associated with software that displays advertisements (called adware) or software that tracks personal or sensitive information.
Not all software that provides ads or tracks your online activities is bad. For example, you might sign up for a free music service, but you "pay" for the service by agreeing to receive targeted ads. If you understand the terms and agree to them, you may have decided that it is a fair tradeoff. You might also agree to let the company track your online activities to determine which ads to show you.
Other kinds of spyware make changes to your computer that can be annoying and can cause your computer to slow down or stop responding. These programs can change your web browser's home page or search page, or add additional components to your browser you don't need or want. These programs also make it difficult for you to change your settings back to the way you originally had them.
There are a number of ways spyware or other unwanted software can get on your computer. A common trick is to covertly install the software during the installation of other software you want such as a music or video file sharing program.
The key in all cases is whether or not you (or someone who uses your computer) understand what the software will do and have agreed to install the software on your computer.
Whenever you install something on your computer, make sure you carefully read all disclosures, including the license agreement and privacy statement. Sometimes the inclusion of unwanted software in a given software installation is documented, but it might appear at the end of a license agreement or privacy statement.
("What is spyware?" article is from the windows defender page at microsoft.com)