Microsoft created a FAQ about a new to release utility. The MSI Utility for Microsoft Application Virtualization enables the distribution of virtual applications without streaming!
This utility for Microsoft SoftGrid, or the new name "Microsoft Application Virtualization", is a new solution accelerator planned for Q4 CY2007 that expands interoperability with SMS 2003 and System Center Configuration Manager(SCCM) 2007. In particular it enables the distribution of virtual applications via SMS/SCCM in a way that is product version agnostic The FAQ can be downloaded:
All this information, and the press releases about the the Microsoft-Citrix Virtualization Aliance makes clear that Microsoft and Citrix are really focused on Virtualization!! http://www.microsoft.com/presspass/press/2007/sep07/09-11VirtualizedDesktopPR.mspx