So, Silverlight 3 was released today, and the Expression Studio is available in a public release candidate, including the awesome Expression Encoder 2.
I'll have a bunch more to say about it, of course, but first off let me just provide links to the important stuff relating to the media side of things.
Scott Guthrie's always-excellent blog post roundup:http://weblogs.asp.net/scottgu/archive/2009/07/10/silverlight-3-released.aspx
Technical overview of media features:http://www.microsoft.com/silverlight/overview/media/media-details.aspx#smooth
Expression Encoder 3 overview:http://www.microsoft.com/expression/products/Encoder_Overview.aspx
Extensive blog post about Expression Encoder 3 new features (it is awesome):http://blogs.msdn.com/expressionencoder/archive/2009/07/10/9828866.aspx
Alas, the RC of that isn't available for download quite yet. Soon, I'm told.
And I had this interview on Streaming Media about the new media features:http://streamingmedia.com/article.asp?id=11268