IIS Media Services 3.0 has been released and is now available as a free download for Windows 2008 and Windows 2008 R2! Chris Knowlton has a comprehensive post on the release and all the details, here is a quick summary: IIS Media Services
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Read the complete post at http://blogs.iis.net/bills/archive/2009/10/14/iis-media-services-3-0-released.aspx