There have been password crackers and revealers for years (all versions of Windows.) This is nothing new. And apparently not illegal.
However there are many sales of cracked or altered Windows 7 that have been sold. It is a sad fact so you may want to have Microsoft check if your copy of Windows is genuine. Be aware that the better cracks pass validation or genuine online tests.
A Huge so called glitch was found on the 15/10/2010 by me I was doing my everyday tasks when an exe appeared on my screen with the name "xl240" this allowed me to hack passwords ILLEAGALLY within my LEGIT windows 7 os the OS was baught on the 12/06/10 at a "PC WORLD" in leictershire. I havnt informed microsoft yet as i kind of figure that they are going to see this post.