Spyware v The People:

Spyware is only part of the home computer security dilemma. The other half is the person sitting at the monitor. Someone once coined the word "PEBKAC", which is geek codeword for "Problem Exists Between Keyboard And Chair". Seriously, people must take responsibility in order to keep their computers clean. The burden cannot rely totally with the operating system manufacturer.
Several rules of computer use to avoid MOST spyware and viruses:
+ Learn to use a firewall.
Windows XP SP2 contains a built-in firewall. It is helpful, yet you should really look into a router if you are on a high-speed connection to the internet. Firewalls block anything from the outside unless you or a program on your PC expressly allow it. This will block a lot of prowling Blaster-like viruses that don't require your action to infect your computer. The software firewall will protect you from threats INSIDE your home network, for the most part, and will often notify you if something is trying to talk to the internet. There is no excuse for using a computer on a regular basis and not learning the normal use of a firewall. Good alternatives to the XP firewall are ZoneAlarm and BlackIce, although their best iterations are not free.

+ Learn what kinds of web sites are safe and stick to them.
If you are searching for illegal downloads, you will likely get into PC trouble. Many notorious sites will infect your computer with BHOs (Browser Helper Objects) that will make your surfing experience miserable. Once you find a site that has the content you want and doesn't fill your PC with garbage, bookmark it and love it. If you are Googling, look carefully at the URLs in the search descriptions and make sure they are not trying to sell you something. Don't click on anything that looks like a sales ad.

+ Don't INSTALL things you don't know much about.
Internet Explorer 6 has some nifty features to prevent some lame installs of garbageware, but the user must choose not to install. Often an ActiveX warning will appear as a long yellow bar near the top of the browser viewing area, notifying you that some dynamic content is wanting to install itself. Make sure it is from a site you know and trust. Microsoft is ok. Macromedia is ok. That sort of thing. When in doubt, Google the name of the program and the word "spyware" together. You may realize that program you want to download is packed with adware! While your free Mahjong tiles game may rock, it may have been free because you allowed it to unpack a trojan on your PC. Oh, and browser toolbars generally take away from your overall viewing real estate, make it start slower, and open you up to new vulnerabilities. Do you really NEED another toolbar? Chances are you already have Google, Yahoo, or MSN toolbars installed right now (look under the address bar...). SIDE NOTE: You don't HAVE to use Internet Explorer all the time. Mozilla Firefox is another popular option that is quite secure so far and has great functionality (including tabbed browsing). Firefox has some security through obscurity, and is a great program.

+ File sharing apps are a pathway to all sorts of garbage.
If you know how to use them, you'll find what you're looking for. If you don't know what you're doing, you WILL get virus-laden fakes and spyware headaches. Bearshares, Bittorrents, and the like are all mixed bags.

+ Microsoft Windows users: turn on automatic updates.
I laugh at companies like CNN who got nailed by Zotob viruses. They had enough notice to test and patch desktops / servers. I had work-related vulnerable machines patched and tested before the first round of Zotobs were widespread. Keeping your system updated will assure that many common infections are avoided. Visit the windowsupdate.microsoft.com website and it should help you turn on the auto feature if it is not enabled.

+ Install a real-time antivirus and a real-time antispyware program.
Real-time programs continually monitor your PC for threats. This requires less action on your part (especially if you set them to automatically update their virus/spyware pattern files), and keeps you aware of the health of the machine. In my opinion, do not install a Norton product. There are better, cheaper, and less invasive programs on the market. Norton is worse than many spwyare apps and viruses. I recommend Grisoft's AVG antivirus. It is free and very effective. It even scans email. Microsoft's Antispyware tool is also an excellent realtime scanner, although I do not know if it will remain free. I recommend both.

Most Linux / OS X users are knowledgable enough or don't have to worry too much about these types of threats yet. Since Windows has the largest market share, it is the unfortunate target. With time, Mac and Linux users will see a climb, although with fewer core-integrated bells and whistles, those OSes will probably be more secure in the face of these dangers.

So be a responsible computer user and protect your PC and your network. Firewall, surf safe, don't install junk, safe share, auto update, real-time protection. These habits will make for a MUCH more enjoyable experience with minor maintenance when updating spyware and virus pattern files or clicking "allow" or "deny" on a firewall.

Swami