no microsoft don't have aportable music thing, they do software for other people's hardware, still and all, the fact that their employees use iPods means that those machines are definitely running apple software on them.
still, i don't see what the problem is, apple makes good hardware with good software, that's how they maintain their market niche, microsoft makes so-so software for generic hardware, that's how they maintain their market share majority (many more people are prepared to buy so-so stuff cheaply than buy good stuff for top dollar) so all this ipod thing means is that microsoft pays their employees too much! (or that their employees are not the mindless drones that the rest of microsoft's users are!)