Microsoft released the beta version of a enterprise desktop virtualization, MED-V, based on Kidaro. This would allow execution of any Windows OS applications on Vista.
MED-V is a solution for Application-to-OS incompatibility and accelerates the usage path on Windows Vista and any future OS. You can download the beta of MED-V here.This is a step towards IT management of OS images across the corporate on any type of hardware (including flash drives) and data management using Active Directory controls.
The picture here would be self-explanatory on the architecture & lifecycle of virtual images: