WinFS is dead
Well according to the WinFS Team themselves, what was supposed to be the new milestone of file storage for Vista seems to be dumped as a whole project.
"... These changes do mean that we are not pursuing a separate delivery of WinFS, including the previously planned Beta 2 release. With most of our effort now working towards productizing mature aspects of the WinFS project into SQL and ADO.NET, we do not need to deliver a separate WinFS offering. ..."