- Background Downloading - Finally. You can queue up to six downloads at a time that will download while you do other things. If you start to play a multiplayer game though, they will pause to as not cause lag.
- Xbox Live Marketplace - This has seen a big improvement. They reorganized the tangled mess of confusing menus with strait-forward menus and options to get you easily where you are trying to go.
- Media Player - The media player has been much improved upon too. You can now fast-forward and rewind through any media. Also, you can now bookmark a DVD. So you can stop the movie to play games and go back to the movie where you left off. Playlists now follow you around. If you start playing music it will continue no matter what you do: switch games, go to the dashboard, whatever.
That about covers it. Head on over to Joystiq for the full coverage, and more pics.