I did not wade though all that Microsoft has to say about some of the Disney typo parked pages displaying PPC links to pornography sites, but it appears that Microsoft does not mention some of the technical reasons for why this could be happening.
Here is some text from a SearchEngineWatch article from 2001:
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#8220;After Infoseek released a new version of its ranking algorithm dubbed ESP in May 1998, some users were surprised to discover the Disney web site coming to the top of Infoseek's results in response to some porn terms. What happened?&
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#8220;Infoseek had started making more use of link analysis, and as it turns out, many porn sites ask users to click on a "Yes" link to verify they are over 18 before admitting them further into the site. As a joke, those who click on the "No" link might be sent to a site like Disney. As a result, the proximity of Disney's hyperlink on pages also containing porn terms helped make the Disney site relevant for those terms.&
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So, I do not think that Microsoft is telling the full story.