Nice, Microsoft is about to get some healthy competition to their Softgrid software virtualization.  VMware just bought Thinstall, for those of you who have no experience with Softgrid / Thininstall the brief description of what is is all about would be something like this;  Software virtualization is more or less the same as VMware Server / Microsoft Virtual Server is to OS virtualization, it allow you to run an application without installing it and without polluting the host os with registry entries and config files stored all over, an other cool thing is it will allow you to eg. install Office 2000, 2003 and 2007 all at the same time.. 

Goto http://www.vmware.com/whatsnew/thinstall.html to watch a demo or try http://www.thinstall.com/.  Thinstall has the upper hand over Microsoft as Thininstall does not require client software to be installed in order to use a virtual application, Thinstall also include the option to create .msi files (just as softgrid).

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Visual tour; http://www.thinstall.com/demos/intro_dec11/
Very cool, and pice of pie… thrust me….