Some good news for enterprises putting off desktop virtualization because they don't like Vista: The latest enhancement to Microsoft Desktop Optimization Pack will let you run your older applications.
The newest version of the Enterprise Desktop Virtualization software (MED-V) provides a "virtual envelope" within a desktop that can contain older versions of Microsoft software. So if you like the results you get with your Windows XP or 2000 applications, you can now launch them in a Virtual PC that is fully transparent to the user.
For administers, the system allows all applications -- legacy or otherwise -- to be managed from a central location and governed by the same policies that apply to newer apps.
The system is built on technology Microsoft acquired from Kidaro last month.
The only drawback is that the software will only be available as part of volume licenses of MDOP or with an MSDN or TechNet subscription, although Microsoft is willing to change the licensing terms so you don't have to pay all over again for your current applications.