I just want to put this on record, as a guy whose whole career is wrapped up with Microsoft technology and who has a lot of respect for many of their achievements - I'm against Smart Tags. Read this article and follow some of its links to get an idea why this is such a horrifying prospect.
And a quote from Davenet that really points up the intrusiveness of this:
Will Microsoft be Smart Tagging the Bible? "In the beginning was the Word, and the Word was with God, and the Word was God."