RE: Can Microsoft/email providers see what we are saying?
I have a feeling (thought it's just a feeling) that it's unlikely that any ISP will passively log MSN conversations. It is also unlikely that they'll do it deliberately without telling people.
To try and understand what I mean... if your ISP monitored *all* traffic coming from your PC, then it would take an *immense* amount of storage. My ISP gives us a 40gb bandwidth limit per month. They've maybe got a million clients. That's a theoratical 40 * 10 ^ 15 gb per month of storage they'd require.
Usually, unless requested to otherwise (by the police, or whoever), I'd expect ISP will only log connections, not actual data transmitted - for this reason. Hence while using MSN Messenger all that'll be logged is your connection to the server - not even who you're talking to! (Unless of course you send a file, in which case a direction connection will be made between your computers).
With a computer, I'd be more worried about a key logged monitoring my every keystroke rather than my ISP maybe reading my chats.
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