Microsoft has indicated in their blog that the next release of Windows 7 will not be a Beta 2 but a release candidate, indicating that they're pretty close and they want people to start testing the release, especially because all the features are done. All the folks running the Beta are actively contributing to fixing it. Theyre getting performance telemetry, application compatibility data, usage information, and details on device requirements among other areas. This data is very structured and very actionable. They have very high-bandwidth relationships with partners and good tools to help each other to deliver a great experience. One thing you might be seeing is that hardware and software vendors might be trying out updated drivers / software enhanced for Windows 7 - at least that is what they hope for.
For example, many of the anti-virus vendors already have released compatibility packs or updates that are automatically applied to your running installation. You might notice, for example, that many GPU chipsets are being recognized and Windows 7 downloads the updated WDDM 1.1 drivers. While the Windows Vista drivers work as expected, the new 1.1 drivers provide enhanced performance and a reduced memory footprint, which can make a big difference on 1GB shared memory machines. You might insert a device and receive a recently updated version of a driver as I did for a Logitech QuickCam. Another example some of you might have seen is that the Beta requires a an updated version of Skype software currently in testing. When you go to install the old version you get an error message and then the problem and solutions user interface kicks in and you are redirected to the Beta site. This type of error handling is deployed in real time as we learn more and as the ecosystem builds out support. It is only because of our partnerships across the ecosystem that such efforts are possible, even during the Beta.
Every day Microsoft is researching issues, resolving them, and making sure those resolutions did not cause regressions (in performance, behavior, compatibility, or reliability). The path to Release Candidate is all about getting the product to a known and shippable state both from an internal and external (Beta usage and partner ecosystem readiness) standpoint.
Microsoft will then provide the Release Candidate as a refresh for the Beta. They expect, based on their experience with the Beta, a broad set of folks to be pretty interested in trying it out.
With the RC, this process of feedback based on telemetry then repeats itself. However at this milestone they will be very selective about what changes they make between the Release Candidate and the final product, and very clear in communicating them. Microsoft will act on the most critical issues. The point of the Release Candidate is to make sure everyone is ready for the release and that there is time between the Release Candidate and their release to PC makers and manufacturing to validate all the work that has gone on since the pre-Beta. Again, they expect very few changes to the code.
The obvious question is that we know the Pre-Beta was October 28, 2008, and the Beta was January 7th, so when is the Release Candidate and RTM? The answer is forthcoming. Our guess would be within two months. However, its anyone's guess at this point.