When using Windows 7 RC, it will apparently phone home to Microsoft with telemetry data to help with fixing bugs etc. I haven't really played with Windows 7 RC much, and so don't know if there is an easy way to stop this from happening (unless I specifically let it).
Can it be blocked from sending any telemetry data (ie. so it just acts like a normal release edition of Windows) - for example, by using a third party firewall (like LnS), as opposed to using the in-built Windows Firewall (which I'm guessing will not block this due to internal whitelist) ?
By using their products you are automatically part of S-Eye, imho. Sponsored by MS, CIA, NSA, oil mafia & co, you are welcome to convince me that I might be wrong.
Firewalls can slow down their spy activities but not block because they poison the http traffic with attached viral communication packets, likely this spy method is not restricted on software, may also be valid for hardware especially bios.