From what I understand, Microsoft hardware was generally considered highly reliable and of great quality. They made (and still make) great input devices like mice and keyboards and joysticks. But for some reason, the Xbox line doesn't seem to be of similar quality. I don't know why that is...
I haven't had a good experience with a Microsoft input device that I can remember.
A wireless mouse which had a short battery life. A wired mice which randomly moves to the top-right or top-left of screen while moving. The build quality of the ones I have bought seem fine, but not something I'd want to test out.
These days, I recommend Logitech in terms of input devices. Sure, it costs a bit more, but you get something that lasts - and many models come with a charger cradle so the mouse never needs its batteries replaced. I bought a Logitech wireless mouse/keyboard combo over five years ago now and its still going strong. Aside from not having the multimedia capabilities and extra keys in Linux (its available, but I haven't actually tried) its done everything I've asked of it.
Microsoft software on the other hand is notoriously prone to problems. Windows is more prone to viruses and crashes than other operating systems like Linux or Mac, and the same is also true with their other software products like Internet Explorer, Outlook, and Office.
Yawn. Here's an update on your early-2000's information.
~ I've been using Vista for about 8 months. It started out rocky but once I
cleaned out the crapware that came with the laptop and installed SP1, its been much more stable and consistent. Not sure how it'd go on existing hardware, but for newer systems there are definitely benefits (just don't use the cheapo Intel graphics chipsets). Haven't had a blue-screen since I installed SP1 - now I'm just tweaking the hell out of it.
~ IE 7 shits all over IE 6 (this is coming from someone who still has to develop for IE 6 users). Sure, its still playing catchup to the likes of Firefox (BTW, get Firefox 3, its still beta but for Windows XP and Vista its been stable for me for months) and *insert your browser here* but there's no use holding on to IE6 as its like having a gaping hole and wondering why trucks are driving through your system. I'm working to move our remaining clients to IE7, but of course inertia is a bitch.
~ Not sure why you bring up Office 2007, but if we're talking security then 2007 has extended Office XP's macro security (opening a unknown file could run a script and access parts of your system). If you want to use a macro in a file, you need to save the file as a different file extension (for Word documents, its .DOCM instead of .DOCX for a macro-less file). 2007 also brings XML file formats instead of the old binary format - and has better development tools for producing documents under .NET (and can be done for non Microsoft platforms as well). Jokes about OOXML and ISO/ECMA stuff aside (I'm about to start looking over the specification in detail), I'm glad to see the days of binary formats in Office ending.
~ Outlook is something I left alone for a long time due to Thunderbird being "the new thing" but now that I have Officee 2007 I started using it again, and wondered how I lived without things like a calendar and syncing RSS feeds in my inbox. Sure, you can use things like Google Calendar and Google Reader, but I love having all this in one place (and accessible offline). I was aware of the security issues with Outlook Express (migrated my parents to Thunderbird) but that's been ditched in Vista for a stripped back mail client called Windows Mail (don't think its the same code base).
So my personal theory is it may have something to do with the software MS runs on it. Maybe the 360's operating system is very demanding of the hardware and causing it to overheat? I don't really know, but then again Microsoft doesn't have experience making PCs.
I'm fairly certain the 360's major issue (the RRODs) is excessive heat warping components (solder shrinks and expands more than anticipated, connections break on the PCBs (graphics card in particular?), hardware shats itself because of said connections) which wasn't found in QA of the initial models. I'm not going to hunt down the "investigations" but I think it was a "Microsoft mole" who confirmed this.
EDIT: Wikipedia is your friend:
http://en.wikipedia.org/wiki/Xbox_360_technical_problemsThey certainly aren't like Dell or HP in that respect.
Hilarious. I refuse to touch Dell laptops and HP printers (the home ones at least) because of their reputation to break spontaneously (that's if they work out of the box) and require to be sent back for repairs.
EDIT: Getting products confused