Bruce,
I have seen that Microsoft System Privacy Update popup at other sites, can't remember where. I never opened any of them.
Checked my system and registry entries, etc. but found nothing suspicious. Also checked trendmicro's site, updated my PCcillin pattern files, ran PCcillin, Ad-aware etc. (have Pop-Up Stopper constantly running and ZoneAlarm) and nothing, so guess I'm ok.
Anything else one should check? Thanks for the heads-up.
Newly