We've been refining annotate for inclusion in Orcas (BTW, I'll be blogging about all the cool TFS features coming in Orcas soon).  We've been hooking up lots of nice features, like integrating it with history, diff, more editor features, implementing accessibility, keyboard and more right click menu support and more.  We've also been refining the look and feel.  The DevDiv UX team has been giving a bunch of feedback and we've been testing it with different monitor types, high contrast mode, etc.  I've posted an updated screen shot here.  The changes are subtle but we think it makes it a bit more readable and I'm interested in any feedback you have.

• We changed the shading because on some monitors the dark shade made the text hard to read.
• We removed the date because we thought it didn't add enough value for the screen real estate it took.
• We changed the grouping lines so that, in the future, if/when we make it editable they won't be confused with the outlining group bars.
• We made the selected region a little more pronounced.

Brian