One of the great features of Windows Server 2008 is the Server Core installation. Only the basic OS feature set is installed. No UI, no IE, none of the other fancy stuff.
While this is great is terms of manageability, reduced attack surface deployment, foot print among other things, the one piece missing was Internet Information Services or II7. Customers were asking for Server Core plus IIS7. Well, you've asked for it, you got it.
At the TechEd 2007 keynote this morning Bob Muglia announced this important enhancement to Server Core of Windows Server 2008. Can't find the press announcement yet but you can read more on the Redmond Channel Partner website, on Mary Jo's blog and elsewhere and on Live Search.