No separate MS app server. It seems that Intel and Microsoft are slowly building up the momentum for Palladium. First they admit that the current technology has problems, and then they offer (their) solution, before the competition has a chance to step in. However, perhaps the IT experts and consumers have already learned something: Windows 3, Windows 95, Windows NT, Windows 2000 and Windows XP all promised to solve the problems of the previous systems, and didn't.