This looks like the next wave of home networking. Our family of 3 now has 6 computers running on the network, and no clear backup plan for each computer. We will be an early adopter of this technology once it become available.
Windows Home Server (WHS) is not about streaming digital media around the home, though of course it does include Windows Media Connect technology and can be used in this fashion. No, WHS is about storage first, and remote access second. WHS's storage features are innovative and will likely blow people away: The product moves the notion of backup from the PC level to the family level, and lets you backup all of the machines in your home seamlessly. Best of all, you can add storage however you'd like, and WHS will simply aggregate all of that space into a single, drive-letter-less storage pool.
WHS's remote access features will allow users to access any of their home PCs from anywhere online, duplicating functionality that people today associate with products like GoToMyPC. Microsoft will even throw in a free domain name, making this access easier than ever. Note that remote access requires Windows XP Pro or higher, or Windows Vista Home Premium or higher.
Finally, in a nod to enthusiasts, WHS will be available in both pre-made server appliances from companies like HP, and as a separate software product that you can install to any PC or server. WHS is based on Windows Server 2003 R2, and not Longhorn Server as rumored. It features a super-simple tabbed-based interface that beginners and advanced users will both enjoy, and will ship in late 2007. HP will show off a cool and compact WHS design, as will original device manufacturers like Inventec and Quanta.