Some amazing stuff can be found in this pdf article . I wonder when we'll see them come to life. From what I can tell/heared the Yukon release would integrate some if not all of this stuff in one way or another. I did hear some stuff during User Group meetings about returning File System Objects such as files or directories from stored procedures and other stuff, but reading this makes it all look much more real.
Since Don Box is mentioned in the Thank you notes, perhpas he could shed more light on this if possible...)
btw, I came across this while reading the win_tech_off_topic mailing list.