The adware company you're referring to is Claria:

http://www.claria.com/“ target=”blank” rel=”nofollow”>http://www.claria.com/

http://www.nytimes.com/2005/06/30/technology/30soft.html?ei=5090&en=f489deb1b5308190&ex=1277784000&partner=rssuserland&emc=rss&pagewanted=print“ target=”blank” rel=”nofollow”>http://www.nytimes.com/2005/06/30/technology/30sof…
http://pqasb.pqarchiver.com/wsj/access/862702281.h…“>http://pqasb.pqarchiver.com/wsj/access/862702281.html?dids=862702281:862702281&FMT=ABS&FMTS=ABS:FT&date=Jul+1%2C+2005&author=Mylene+Mangalindan+and+Robert+A.+Guth&type=8_90&desc=Why+Microsoft+May+Wade+Into+%27Adware%27+Industry“>http://pqasb.pqarchiver.com/wsj/access/862702281.h…

Hope that helps –

So if you are using Microsoft's Antispyware software, it will ignore Claria?

My understanding is that Microsoft “downgraded” their assessment of the threat represented by Claria's adware in their anti-spyware product from “quarantine” to “ignore.” It did the same for several other adware programs. The second link points to Microsoft's public statement on the topic:

http://www.spywarewarrior.com/elh/claria-detections.htm“ target=”blank” rel=”nofollow”>http://www.spywarewarrior.com/elh/claria-detections.htm
http://www.microsoft.com/athome/security/spyware/software/clarialetter.mspx” target=”blank” rel=”nofollow”>http://www.microsoft.com/athome/security/spyware/software/clarialetter.mspx

why would anyone use the Microsoft antSpyware software if its biased like that?

I can't speak for “anyone,” and I'm not in a position to tell anybody what to do. My personal opinion is it all comes down to trust. When users install security programs of any nature – firewalls, anti-spyware, pop-up-blockers, etc. – those folks are making a decision that they believe they'll agree with the policy decisions implemented in those products.

Microsoft claims the criteria for its anti-spyware product are objective:

http://www.microsoft.com/athome/security/spyware/software/isv/analysis.mspx“ target=”_blank” rel=”nofollow”>http://www.microsoft.com/athome/security/spyware/software/isv/analysis.mspx

According to these criteria, “displaying ads” is not considered much of a threat compared to software which monitors keystrokes, scopes out personal information, accesses remote items, or actively damages your software or data. Microsoft's anti-spyware product does currently identify Claria software and provide a mechanism for users to remove it.

However, I must leave our Gentle Readers to determine for themselves whether or not they agree with Microsoft's assessment of Claria's software. :)

I heard that Microsoft bought some adaware company named Clarius (spelling?). So why would they sue a spammer, but decide to support Adaware? Its like telling one Devil he is bad and the other you are friends.