Microsoft Live Search - Still a Long Way to Go?

I've been scanning through a long thread about the internals of Microsoft Live Search.  If you're into search engine optimization (which I'm not), then the consensus from the forum is:

• Use of H1 and H2 tags will penalize you.
• Low keyword density is good.  High makes the algorithm think you're spam.
• Authority sites don't rank well.
• If the search term is in the domain name, life is good.

Oh, and overall, people claim the Microsoft search results return a lot of spammy link pages.

Details.