Apparently MS will finally unbundle IE version releases from New windows releases. The Beta of IE7 will be released this summer, about a year ahead of the Longhorn Windows release.
The new release will be primarily security oriented but will also include a spyware checker. For XP SP2 only, although there may be a W2K version to follow.
There will also be an XP SP3 out this year, maybe with IE7, maybe not.
I normally avoid IE beta's like an ex-wife but will probably test this one out. If they fix the broken implementations of CSS, XHTML, and HTML in this release, a lot of sites that are designed to look good only in IE may wind up broken.