This is another old but very hot question since OOP kicked in.
There are many reasons to use(or not) a static class, of course and most of them have been covered in the multitude of answers.
I will just add my 2 cents to this, saying that, I make a class static, when this class is something that would be unique in the system and that would really make no sense to have any instances of it in the program. However, I reserve this usage for big classes. I never declare such small classes as in the MSDN example as "static" and, certainly, not classes that are going to be members of other classes.
I also like to note that static methods and static classes are two different things to consider. The main disadvantages mentioned in the accepted answer are for static methods. static classes offer the same flexibility as normal classes(where properties and parameters are concerned), and all methods used in them should be relevant to the purpose of the existence of the class.
A good example, in my opinion, of a candidate for a static class is a "FileProcessing" class, that would contain all methods and properties relevant for the program's various objects to perform complex FileProcessing operations. It hardly has any meaning to have more than one instance of this class and being static will make it readily available to everything in your program.