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Though you can't tell, the seemingly static image in the preview pane was actually an animation! In fact, the preview pane could consist of all moving parts, if a developer wanted to do as such for their application. In some of the later pre-cancellation builds of Longhorn, Microsoft included preview pane auroras, which all varied in color (depending on the type of folder that was opened) and were coded in XAML.
Rounding off the "Longhorn for business" screen shots, this is an example of multiple non-maximized windows, demonstrating what I noted earlier about Aero's translucent and non-translucent states. Needless to say, at this point, Windows Longhorn was shaping up to be quite easy on the eyes while one worked!
Just about every Microsoft service that Longhorn touched was going to be given the Longhorn UI treatment, including Live services. The screen shot above demonstrates that reach and showcases how it could, in theory, work to create a seamless Longhorn experience.