As an instructor I hate the idea of MSFS for VFR training but think it is quite useful for IFR training. The key here is "training" as in instructor directed exercises.
I find the most effective use of MSFS is for students to to practice the exercises they performed on their last lesson. By that I mean they fly the exact same route doing the same exercises as they did in their last sim/airplane lesson. That way you know what is supposed to happen and can perfect skills and knowledge you already have learned. Using MSFS to learn new procedures on your own usually results in negative training. For practicing procedures I recommend using the autopilot on heading and altitude hold mode so you can concentrate on what the needles are doing.
Since the aircraft in MSFS fly like crap you actually need a pretty good scan to fly the aircraft accurately so it is also valuable to do a concentrated 15 minutes of climbs descents and turns on a regular basis. Don't worry about the nav instruments just work on accurate aircraft control.
Last edited by Big Pistons Forever; 10th Jan 2013 at 00:14.