They certainly favour the keywords in domain names.
I’ve got a few domain’s with funny extensions which don’t rank well or at all in google/yahoo. However there showing in the top 45-90 in msn with low link popularity. I’ve got one in the top 50 for “online casino”, so I guess it’ll be time to put some more effort into SEO’ing that site!
Also some of my domains that rank in the top 10/20 in google/yahoo that don’t have keywords in the domain don’t even appear in the top 150 in the msn results.
Maybe they will have a less link obsessed ranking model.. which would be nice, cause I’ve about had enough of the link popularity race.