Having seen some of the cool Avalon Windows Presentation Foundation stuff demoed in the keynote at Tech.Ed, I can't wait to see the next Beta. However, onto Beta 1.
Startup time: It seems that for about 10 minutes after booting the Virtual PC, the CPU sits at 100%, rendering it all but useless. Things get a lot better after this though.
My Computer: The "My" has been dropped from My Computer
Local Drives: The C: drive we all know and love seems to have become E: drive. Interesting.
Search: Desktop search is now firmly integrated into the operating system. Available from the Start Menu.
Add/Remove Windows Components: I went looking for this to install IIS, in preparation for Visual Studio .Net 2005. I still can't find it.
Web Application Server: IIS Web site as well as ftp site is installed by default. The Services are disabled.
Firewall: The Windows firewall is not enabled by default.
Network Presentation: A new folder on the "All Programs" part of the Start Menu. I'll have to check this one out a bit more.