This is something that I haven’t played around with a whole lot, but I’m about to. I’ve heard all kinds of buzz about it, both internal and external to Microsoft. So far, I’ve heard some pretty impressive numbers and results from organizations deploying with Microsoft Application Virtualization (the software formerly known as Softgrid). If you have deployed, or are thinking of deploying, Office 2007 with it, I’d be very interested in hearing from you, either in a comment here or in an e-mail to firstname.lastname@example.org (that’s as in feed the ork).
Here are a few links if you want to learn more: