Microsoft WGA servers down; XP and Vista installs marked as counterfeit - UPDATED

UPDATE, 2:10pm PST: Looks like MSFT has fixed the immediate problem with WGA, for now: Link. But the product is still, as they say, defective by design. (Thanks, Marius)

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BB reader David McBride says,

DRM bites again: the Microsoft Windows Genuine Advantage servers (which every XP and Vista install phones home to) all failed sometime earlier today.

The result? Every single Windows XP and Vista installation -- except possibly those with volume license keys -- is being marked as counterfeit when it tries to check in. Installations which are flagged as counterfeit switch to a "reduced functionality mode" which results in features like Aero and DirectX being disabled.

So far, the only public response from Microsoft has been indirectly via their technical support forums, where a user has posted the following snippet from an email he received from MS's technical support address:

Thank you for your response.

I’m sorry to inform you that the Windows Genuine server might be down for few days. I have escalate the issue to our Genuine team, kindly try to validate again on Tuesday 28 Aug 2007.

Thank you for contacting Microsoft Technical Support.

Link.

Update, 12:03pm PT: David McBride says,

Phil Liu, the WGA Program Manager has responded on the Microsoft forums to say, effectively, "we know, we're taking it seriously and we're working on it."

I understand the frustration you all are going through. I'm investigating the issue right now.

I guarantee that we're working on this issue right now. For folks wondering, MACHINES ARE NOT SHUTTING DOWN with reduced functionality.

I guarantee that I will personally resolve this issue before I go to sleep - whether or not it is Tuesday I sleep. My goal is to identify a FIX for this issue - afterwards get you all what you are looking for, an explanation and cause.

The message from the Supportability team will be addressed appropriately as well. I encourage folks to keep an eye out on these forums.

I promise I will have an explanation and resolution as soon as humanly possible.

-Phil Liu @ Microsoft
Program Manager, WGA

Link. This is also not the first time that this has happened.

Reader comment: Thomas Hruska says,

Here's a possible explanation for what happened, spanned across two blog entries over the past 24 hours: one, two.