Microsoft has changed the version number for next version of Silverlight from 1.1 to 2.0. They're planning a beta release for Silverlight 2.0 in the first quarter of calendar year 2008. So look for it before the end of March.
In addition to more .NET support, Silverlight is adding a comprehensive control model, powerful skinning/theming, data binding, and over 20 controls in the box.
Check out Scott Guthrie’s blog; http://weblogs.asp.net/scottgu/ and the Silverlight homepage http://www.microsoft.com/silverlight/.
To see Silverlight in action, visit the new Microsoft Download Center Beta http://preview.microsoft.com/downloads/.