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Bitmap Frogs said:

Windows 7 appears to be Vista re-skinned and optimized.

There are a lot of under-the-hood changes and a few other things but this statement will be fairly accurate as far as what most consumers will see.  It will have the Vista feel but basically be better at pretty much everything Vista did plus since it is compatible with Vista drivers we won't see the major complications we saw in the XP->Vista change.

Overall, unlike Vista it's exactly what an OS upgrade should be--an improvement over the old one.