There is some amazing work going on at Microsoft. Recently I heard about a project that would bring WinFS — Windows' next generation filesystem — to a completely new world of applications. It's called Project Orange. Nothing much is being said about it, but there is one little tidbit on WinFS's Team Blog:

"Project Orange is a brand new team tasked with building a next-generation Information Explorer based on WinFS and WPF (AKA Avalon) to help users finally get organized."

So imagine the traditional way of finding what you want in Windows. Windows Explorer: you go to My Computer, C:, all in one folder (or multiple if you want), navigate through the folders in a tree-like algorithm. WinFS is based on an entirely new paradigm — a single file could be in multiple "folders". When you start to visualize how this is possible on a desktop, you'll start to realize the crazy possibilities. Here's a video to help you (WinFS's iWish video)