This article on CNN is a reasonable backgrounder on the upcoming Microsoft vs. the FSF battle. It claims that Hotmail is back to running on FreeBSD, but isn't clear if it's repeating past reporting in the present tense, or if Hotmail is still running FreeBSD.
This tidbit was interesting, from Brad Kuhn:
Microsoft's public talk about how much it dislikes the open and free software approach has served to unite what was a fractious community of advocates -- as well as draw more adherents to the movement, said the Free Software Foundation's Kuhn.(Note to self: must get Brad to join the dark side -- the Free Stout Foundation)