I hope the Security Shootout indicates a genuine shift of direction by Microsoft, towards real security in their products..... but I must admit to being skeptical.
Since 1999, I have been associated with New Media Security, who develop strong encryption solutions for PC and PDA devices, so I've come to understand a lot about the security shortcomings of various Windows versions.
During that period, Microsoft introduced Windows 2000 and the Encrypted File System (EFS). On the face of it, this seemed like a positive development. However, Windows 2000 and XP still suffer from one extremely serious flaw in their security, to do with the way in which passwords are encrypted.