Let's see if I can get this straight.
First, Chris Pirillo says (timecode 37:59) he's not entirely pleased with the word "podcast" in Episode 11 of This Week in Tech. The Seattle-PI then reports that the sentiment is shared with "several Microsoft employees" who have coined the word "blogcast" to replace it. Next, c|net picks up the story and says that the word "podcast" is a "faux-pas" on Microsoft campus. [Typo fixed: 9am]
In this manner, a remark by someone who isn't even a Microsoft employee becomes, through rumor, speculation, and wild extrapolation, a word-ban at Microsoft.
Pretty neat trick.