Very interesting to see this popping up. It's definately a good fit for MS, considering we all have had to deal with DLL hell as they put it. What would really scare me is if they go after Citrix after that and basically corner that entire market area of virtual desktops.
The official announcement from MS was made public within the last day or two.
This is interesting, seeing as VMware and Softricity have collaborated on virtualisation-related things in the past, such as this paper: http://www.softricity.com/news/collateral-request.asp?docID=vmwaredod
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They won't put out their citrix replacement until the agreement ends, which would have been last year, but some last minute discussions shelved bearpaw for an unspecified time.