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Here is a link to the power point presentation I am getting all of this from:

http://www.bungie.net/images/Inside/publications/presentations/gdc2008_butcher_chris_matchmaking.ppt

This is from GDC '08.  I will be picking and choosing the more interesting tidbits.

There are some interesting things in the presentation.  Gives a good overview of what it is, how it works, and what works about it.  The last two slides I linked to are particularly telling for what Reach's system will entail. 

Reach will probably have goals to reach instead of/in addition to ranks.

Rewards will be given for reaching said goals.

They feel they have solved the majority of the issues from Halo2/3 and Reach should have an even better matchmaking system.

And the last line is particularly interesting.  "Peer-to-peer is the future"

 

I think we should expect an incredibly tuned system for Reach.  I cannot wait.