I've heard in some posts regarding their application to Microsoft. I never have imagined such a nerve wrecking interview before. I guess I can understand the perspective of Microsoft as they would only want the best to work for them.

The interview topics would ofcourse depend on the position you're interviewing for (SDE/SDET/PM).
I would say from my own personal experience they focus a lot on data structures and algorithms (big-Oh notation)...if you can come up with multiple solutions to a problem increasing the efficiency (time/space) that's what matters. For coding purposes any language that you're most comfortable in works..even psuedocode is acceptable. Depending on the team you're interviewing with you might have to brush up on OS concepts/networking etc. Also if it's a PM position for the design questions do ask a lot of questions to make sure exactly what they want. Starting the design/code w/o asking a lot of clarifying questions is not a good sign in general for any of the MS interviews.

thanks

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Karpagarajan. R
Necessity is the mother of invention