Ok so on the reccomendation of a colleague here at work, I installed the MSN IE Tool bar, and the new Microsoft Anti Phishing plugin. I too get a lot of bogus emails phishing from Bank of America, US Bank, Ebay, Paypal, etc. etc. all of which I may have some sort of affiliation. I tend to ignore most of them, but every now and then, I'm almost compelled to believe that one is from a legitimate source. So I figured the plugin and toolbar instal could not hurt.
So I installed it, and wanted to see it work. Simple.... a quick trip to my Gmail spam folder (GMail does an excellent job of notifiying you of what it thinks is a spoofed or bogus email by the way) and there is an email from 'Chase Manhattan' - Oh no I need to reinstate my account... (What account? I closed it a long time ago...) So I figured this would be a perfect test!
I clicked the link, and it was painfully obvious from a technical standpoint. The link was going to some .br address, and was clearly nothing to do with Chase. The acutal page that rendered looked good, and if you were not paying attention to the address bar, it's easy to see how you could be duped.
MSN Toolbar INSTANTLY notified me that this was potentially a fraudulent site, and would not let me enter information. They even put a link in the notification bar to report the site. I thought to myslelf, cool... I'll help them out by agreeing with them and reporting the site. Then this screen came up:

Ok, first a quick explanation of what this is. It's called CAPTCHA, and it's developed to make sure a human is the one entering information into the form, and verifying that it's not a robot or some program doing it. I'm all for that, but this is absurd. Sure, when you really sit and work at it, I guess you can make the numbers and letters out... is that a 1 or an “l” at the start, or is is just noise? Is that a “J” at the end?
The short story? I didn't even bother trying, I've seen so many forms like this, and had trouble 'matching' their letters. I closed the page and said forget it. So here's a capture of a good implementation of CAPTCHA from Scott Hanselman's blog.

I'm no Microsoft basher, but you think they would be able to implement an easy, yet effective CAPTCHA implemenation.