I'd like to take a moment to clarify some confusion that I've noticed recently. With Windows Home Server (WHS) Power Pack 1 sent out via Automatic Updates in August 2008, the WHS team has now split its focus in two. Microsoft's home server operating system will be getting two separate improvements: Power Pack 2 (codenamed Snoqualmie, or just SnoQ for short) and version 2 (codenamed Vail). The two are being confused and used interchangeably, but they are completely different updates, and while little is known about them so far, here's my attempt to shed some light on them:

WHS PP2 is simply the second power pack to the original WHS. A power pack is much like a service pack for any another Microsoft operating system, except that its main focus is to bring new features to the consumer, in addition to the usual bug fixes. It will likely contain features that didn't make the cut for PP1. PP2 will be free.
WHS version 2 is based off the original WHS, but will likely come with a revamped UI and other completely new features. It is also speculated to be based off of Windows Server 2008 (R2?); WHS v1 is based off of Windows Server 2003 Service Pack 2. WHS v2 will likely be sold as a new product.

Full Story: http://arstechnica.com/journals/mic...ing-for-windows-home-server-pp2-and-version-2