Great demo as expected for the Consumer Electronics Show during Bill's keynote delivered by Justin Hutchinson.  Watch the video or just read my transcript of the demo below.

• Vista search to find a document
• "windows vista is not about searching its about finding". 
• Can search across all the machines in your home network.
• Thumbnail previews and layout region preview of word doc.
• restored older version of the document using versioning at the OS level
• Used document themes in Word with live preview and styled a photo
• Live search to show virtual earth 3D technology using an xbox 360 controller to drive around the town with travel information.
• Media Center on Vista: sports lounge and Fox Sports.com.  Shows realtime information and alerts shown around the live footage.  Scores for games set for tracking.
• Video On Demand services from new partnerships
• 2 billion photos were taken last year.  Photo Gallery.  DVD maker making your own DVD using a range of themes with slideshows, videos and "extras"
• Ultimate extras:
• Group shot. combine the good bits of two pictures (used two with kids who keep shutting their eyes) seamlessly making the shot you wish you'd taken
• motion desktop:  set any video as your desktop background

Other demos

• showed playing games in multiplayer mode over live but using vista with a 360 handset
• HD demos on Xbox and IPTV on Xbox.  Can chat with friends while watching TV.
• futuristic mock ups
• projection of menus onto the kitchen worktop surface
• large interactive video wall in a bedroom

Other announcements

• Ford's new implementation of the autopc, "Sync". 
• call audio transferable via bluetooth to the car audio automatically
• reads text messages outloud
• all portable music players inc usb devices and flash drives
• upgradable platform
• will be out this year on 12 models inc new Ford Focus