The people loved the future version and said they'd definitely upgrade. Then they learned that the software they loved was actually Vista, not some future version of the operating system.

Perhaps with that video containing the user comments in mind, another analyst at the meeting asked Microsoft executives how the company expects to be able to sell Windows 7, the next version of the operating system, when people have such a poor perception of Vista. Executives didn't have a great reply, beyond assuring the audience that the problems that plagued Vista at its initial launch are now fixed.

Vista initially had serious compatibility problems but SP1 largely fixed the problems, so with Windows 7, Microsoft "takes that issue effectively off the table," said Bill Veghte, senior vice president of the online services and Windows business group. Starting later this year, his team plans to spend a lot of time spreading the word about Windows 7 and explaining that it won't encounter the same issues that Vista faced, he said.

The perception problem stretches into the online services market, where Microsoft has struggled to attract users. Another analyst at the meeting asked executives if they planned to make changes to the company's online branding and offer a single place where end-users could discover that some of Microsoft's online tools are better than the competition. Currently, Microsoft offers a host of online services, including maps, blogs, e-mail and instant messaging. But the services are difficult to find, sometimes available under different brands including Live and MSN.

CEO Steve Ballmer assured the crowd of analysts that the company is working on streamlining its online brand and developing a single page where people can find all available Microsoft online services. The page will predominantly feature a search bar, since that's an opportunity for revenue, but it will also display content tailored for each user, he said.