WM 2003
"Our team has been spend some cycles the last few months on a new refresh of Web Matrix. We've unfortunately been heads-down on ASP.NET V1.1 and ASP.NET V2 for the last several months -- which is why the refresh has taken longer than we origionally hoped for..."
"...favorite new features include in-line user control design-time support (so you actually see the user control contents within a page -- rather than the grey box that shows up today)..."
Very cool stuff. Now, if only the VS.NET team would do this as well... I'm suprised it wasn't in 2003 (or 2002 for that matter).