On Friday Microsoft's Jim Allchin made three announcements:
1) Microsoft reaffirms their commitment for broad availability of the Windows “Longhorn” Client in 2006. The Windows “Longhorn” Server Operating System continues to be expected to be available in 2007.
2) Microsoft plans to make elements of Longhorn’s WinFX programming model available for Windows XP and Windows Server 2003. This will enable developers to write WinFX applications that run on hundreds of millions of PCs and offer these next generation of applications sooner. Specifically, Microsoft plans to deliver the “Avalon” and “Indigo” pillars of Longhorn’s WinFX programming model for Windows XP and Windows Server 2003.
3) Delivery of WinFS will now occur after the initial availability of the Longhorn client. It is expected to beta when Longhorn client is broadly available.
For more information see: Jim Allchin - The Longhorn Update video on Channel9