From what I know and what I found from googling this ...you are right about Microsoft.XMLHTTP being the "generic" version and Msxml2.XMLHTTP being the version specific version. They refer to different versions of xml parsers installed in the client. It seems, the suggestion is to use Msxml2 and also in IE7 you can use Window.XMLHttpRequest which creates the request in a version independent manner.
You can read the discussion in the msdn blog for more insight.
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