Looks like MS is starting to get the message. I was just up in the area last week (and even managed to visit smoe friends at the campus) and can say that there are signs tacked up around the place, reminding employees about the effort...

Secure Coding
by David Wong
last updated June 20, 2002

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Building Secure Systems

Several months ago, Bill Gates announced that security would be the number one priority at Microsoft. Several groups at Microsoft, such as the Trusted Computing Group and the Secure Windows Initiative strive to improve security in Microsoft products and ultimately improve security for individuals and corporations worldwide. These initiatives are not surprising, considering the major vulnerabilities found recently in Windows XP, Internet Information Server, Internet Explorer, and Outlook. Due to the popularity of Microsoft products and their market share, the vulnerabilities have caused havoc all across the Internet. If Microsoft, with it’s billions of dollars of resources and talent, has all these security issues, how do you handle the problem of building trusted systems

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http://online.securityfocus.com/infocus/1596