Back in 2008, Microsoft acquired a company called Kidaro. Kidaro is a virtualization management software. After the acquisition, Microsoft rolled/renamed Kidaro into a product called MED-V (Microsoft Enterprise Desktop Virtualization). Now, some details are surfacing on what is coming out in the 2.0 release of MED-V.
Virtualzation.info has some further information:
"MED-V 2.0 will introduce some features already seen in the Virtual PC package for Windows 7 called XP Mode.
The first one is that the virtualization engine will be in fact Windows 7 Virtual PC.
The second one is the seamless window publishing.
Other new features on the front-end include URL and document redirection, as well as USB pass-through."