The IE team have announced that the next version of IE will be out this month (although an exact date has not been announced yet). This update will be delivered via Windows Update as a High priority update.
Vista just hit RC2 over the weekend, which you can get (for a short time) via the connect site. This release is (to my understanding) running on time and will be RTM in a short time.
I also understand that the 2007 Office System is also running on track for a final release in the previously discussed timeframes too.
Orcas has to follow up Vista, as we want to provide a great developer experience for the Vista and .Net 3 platforms in the best development environment possible.
Hold on to your hats... its launch season.