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Karsten Januszewski, platform evangelist, spoke at the Flash Forward conference, and shows off Microsoft's Avalon UI framework.

The bulk of the talk is demo's and they really give a glimpse of the power of the platform:

13:11 XAML file presentation app. 21:50 3D composition app 24:00 skinning your app 25:50 Avalon notepad 27:30 Media Mania (you've seen this app on Channel 9 before, but here you get to see more) 32:50 Electric Rain's ZAM 3D (amazing 3D to Avalon app) 44:00 Video in Avalon (a preview of a future version of Avalon) 47:30 Video on a 3D sphere 48:20 video on multiple 3D spheres 49:30 A "Halo strip" (multiple photos on 3D surfaces)

It is going to be very interesting to see how the boundary of the browser and the client side app blend together.