Tumor I really haven't dug into it closer since it doesn't directly affect me.. But it seemed to raise alarm in the hardware community around summertime 2002, not two years ago. So there must be a new amendment being lobbyed to it or something.
The thing you're talking about is the unique serial number in Intel CPU's which was the first step in slowly implementing this new technology. Thier aim is to make your computer uniquely identifiable and then by forced hardware, enforce digital copyrights and media content.
The technology I'm talking about 'breaks' current software if it's not tagged by MS etc. as a 'legal licensed' software (theoretically.)
Since it's not yet implemented, nobody really knows what might come out of it. Basically it enables the content providers to control anything you run on your computer, anyway. That means your computer won't boot with Linux or illegal MS OS on hd, your computer won't play mp3's which haven't been paid for etc. nasty stuff. At worst case scenario it might mean total control of the files you're allowed to see and use on your computer, with your government (or government within the government, MS) controlling what you should or should not see on the files or even on internet, for example.
Some people took it seriously enough to file a patent to it's use as an OS licencing tool (in attempt to stop MS from using it as such despite thier assurances that it won't happen.)
Some of the functionality is already in the software such as MS mediaplayer 9. If MS chooses they can set your mediaplayer not to play your free downloaded mp3's or avis anymore - and you approved it all when you signed the EULA.
Needless to say I don't have MP9 installed..
Sorry I don't have more exact links available atm, but at the time I read about it, it was considered a viable threat to digital freedom.