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FREE PC PROTECTION:
(Not an exhaustive list. Your results may vary. Void where prohibited. For entertainment purposes only. No wagering, please. Whattayawantfernuthin'.)
(Thanks, but "Buy a Mac" doesn't qualify as "FREE PC protection")

Free Alternative browsers:
- Mozilla FireFox
- Opera
Free AntiSpam utilities:
- Mailwasher (last free version)
- XTerminator
Free Antiviral/Trojan protection:
- AVG Anti-Virus Free Edition
- Avast! (requires periodic re-registration)
- Ewido
Free Firewalls:
- ZoneAlarm
- Sygate Personal Firewall (thanx KoRn)
- Kerio Personal Firewall
- Test your firewall from without with:
  - ShieldsUP!
  - DSL Reports Port Scan
- Test your firewall from within with LeakTest
Free General Anti-Malware tools:
- Prevx Intrusion Detection (thanx TomGuy)
- WinPatrol (thanx TomGuy)
Free Popup ad killers:
- Bayden Systems Popup Popper: Blocks popup ads well in MSIE
- Shoot the Messenger: Close that friggin' Messenger in Windows XP
Free Spyware removers:
Free System Diagnostics: Everest Home Edition (thanx TomGuy)
Free Windows Update: Windows Update
LAST BUT NOT LEAST: Explore Linux as an alternative OS:
- Try Linux without installing it on your hard drive, via a free bootable CD-ROM! Download Knoppix (or one of these other Linux distributions), burn the ISO file onto a CD-ROM, and reboot with the CD-ROM in its drive. If you later want to install Knoppix on your hard drive, here are some tips.
- Ubuntu Linux (free, user-friendly download)

The difference is that lawmakers shield the corporations that release spyware from prosecution that applies to the authors and distributors of viruses.

And be wary of the company connections of your spyware scanner. Didn't microsoft "reassess" the status of Gator (a particularly difficult piece of spyware to remove) when MS bought out the parent company?