Have a look at this news story.  Seems like most folks in the US are already aware of Microsoft blacking out the desktop of pirated versions of XP and Vista for users here in China.  Some people I know working in other companies have asked me how to fix it.  I don’t readily volunteer an answer and instead deflect the question by asking, “Oh, is your company having this problem?”  They always answer “Yes”.  There’s an easy “fix”:  turn off the updating feature.  This is the way that new software for managing piracy manages to get into their systems (note the ridiculous righteous indignation from the Beijing lawyer).