Microsoft has become an R&D powerhouse, despite their historic tendancy to buy vs. build.

As an Interaction Designer, I was happy to see that the VIBE ("Visualization and Interaction for Business and Entertainment") team has put many of their usability study demo's online.

More advanced R&D can be seen on Microsoft's fantastic "Your Potential. Our Passion" innovation showcase.

Of particular note is the recurring reference to optimizing navigation on larger displays or multi-monitor setups. A solid step towards Sun's "Starfire" vision pioneered by Bruce Tognazzini in 1994, aimed at "envisioning the life of a knowledge worker in the year 2004."