Internet users are quite familiar with the Completely Automated Public
Turing test to tell Computers and Humans Apart (CAPTCHA), a quick method
that verifies whether or not the user trying to sign up is a person or a
bot. A picture with swirled, mangled, or otherwise distorted characters
is displayed and the user then types in the correct letters or numbers.
Thus far, the system has worked well to slow down malicious bots, but
recently the groups behind such software have made significant strides. A
security firm is now reporting that the CAPTCHA used for Windows Live
Mail can now be cracked in as little as 60 seconds.
...
To make matters worse, Websense Security Labs is now reporting that the
method for getting around Windows Live Mail's CAPTCHA has been improved
to the point that a bot can decipher the text and make a guess in less
than six seconds, on average.
Read More:
http://arstechnica.com/security/news/2008/04/gone-in-60-seconds-spambot-cracks-livehotmail-captcha.ars