This overview document provides information about Active Directory Federation Services which I can see being really useful for SharePoint Extranet scenarios.
Federated identity management is a standards-based technology and information technology process that enables distributed identification, authentication, and authorization across organizational and platform boundaries. Federated systems need to interoperate across organizational boundaries and connect processes utilizing different technologies, identity storage, security approaches, and programming models.
Within a federated system, an organization needs a standardized and secure way of expressing not only the services it makes available to trusted partners and customers but also the policies by which it runs its business, such as which other organizations and users it trusts, what types of credentials and requests it accepts, and its privacy policies.
The Active Directory Federation Services solution in Windows Server 2003 R2 helps administrators address these challenges by enabling organizations to securely share a user's identity information.
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