Here's an interesting post from Michael Arrington at TechCrunch. It points to an image that's used on the standard Microsoft site and on their site for Poland. The image is of a meeting. In the US version, there is a black man sitting at the meeting. In the Polish image, someone has used Photoshop to replace the head of the black man with a white guy's head. Check out the blog post to see the images and for the full story (plus some interesting comments).
The translation world is packed with embarrassment horror stories -- it will be interesting to see how this one unfolds and how big it becomes.