Being his first Channel 9 interview, I figure he'll be reading the comments like the rest of us. (And a nice interview too).
Actually, it's his second. You can watch his first Channel 9 video here.
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I don't understnad if I have hardware that has a 5% utilization rate then just add more apps to this server instance itself - instead of loping off another x percent for the virtualization software to run an entire new instance of the OS?
Don't you mean Konfabulator was a glint in Steve Jobs eye? That "widget" project was released in February 2003. When did the Longhorn pre-beta come out?