Microsoft is building a new hotmail... not a surprise after the success of Gmail they have to copy something. The mail beta is only out for a specific user group who is constantly involved in the development of the service. Microsoft team's Imran Qureshi is maintaining a blog and you can track the development at http://spaces.msn.com/members/imranq2/
The code name for Mail Beta is Kahuna (it can be taken as an Urdu word meaning "Say").
Everybody is now developing applications that behave like desktop applications while inside the browser. Even Yahoo recently bought Oddpost last summer, the new Yahoo mail will have features like Gmail with some more features such as: Folders (instead of Labels), keyboard shortcuts (Ctrl+N for new message etc), and you can open a new window for messages.
Yahoo is buying a lot of companies lately... so far I know of Flickr, Oddpost, Konfabulator... and may be a lot more.
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