Microsoft are planning to release IIS 7.0 as a part of Windows Server 2008 release in the first months of 2008. IIS 7.0 is a major update to the web-server stack, and introduces a significantly new and improved extensibility, configuration and administration architecture. 

Here is a peak of the features that will be introduced in IIS 7.0:

• Fully integrated with the .NET Framework, and enables the user to use any .NET language to extend and customize the server.  One will be able to easily do things in VB and C# that previously required writing a C++ ISAPI.
• The deployment, management and administration of web applications on the server is also now  unified across IIS and ASP.NET.
• A new web application deployment framework for IIS that enables you to easily automate the deployment of web applications on either a single server or across a web farm of machines. Enables the full automation of deployment tasks (including via both command-line and PowerShell scripting APIs).