I applied through an employee referral. The process took 2 days. I interviewed at Microsoft (Redmond, WA) in Aug 2008
Interview
Phone interview is easy as I'm an referral. They just ask me how you test an object and stuff like that.
On site I was asked a mapping charerter array question, link list circular loop question and others. But overall, it's pretty easier, as long as you study, you should be fine.