A month ago, we reported on early reports that Microsoft Bing Finally Figuring Out 301 Redirects? Yes, we ended in a question-mark because we were not too confident back then.
Since the November '09 Bing Search update, more people are confirming that Bing is now handling 301 redirects properly.
Historically, Bing use to handle some 301 redirects like 404. How could they do this? I am not sure - but that is what webmasters report. Now, since the update and some saw this a month ago, Bing fixed that issue.
Senior member, CainIV said:
A whole slough of 301'-ed pages that had links to them but were previously stuck in the abyss have suddenly gained the credit that they deserved and have moved forward.
Hopefully all webmasters are taking notice of this now.
Forum discussion at WebmasterWorld.