joechung said:

Hmm, a spyware detector included in Google Pack claims that a Baidu BHO is spyware.

Baidu is a popular search engine in China, more popular than Google China.

There seems to be a conflict of interest here...

Actually, McAfee detects it too...  it's classic adware, installing a useless toolbar and creating unwanted connections to other internet servers (possibly transmitting personal data to those servers).

If you don't see the toolbar, you don't have it installed.  Chalk this one up to a poorly-programmed spyware scanner.