Intel has been making good on their promise over the past year to make their integrated chipsets more useful, especially for those who want more 3D acceleration. A few weeks ago, they even introduced some new drivers that enabled some latent hardware acceleration features on their G965 series chipsets. As far as DirectX 10 support goes, however (which is life and death critical if you believe Microsoft), their chipsets won't support it until 2008.

Their newest chipset, the G35, will be released in 3Q 2007. Still, with DX10 cards abundant in the discrete market, Intel won't have their driver ready until some time next year:

Intel currently schedules to launch the alpha version DirectX 10 driver in fourth quarter of 2007 and will launch the final version in first quarter of 2008 if the process goes well, noted the sources.
This is in contrast to earlier roadmaps, which had put DX10 support for their integrated units as being ready at launch. This could potentially impact sales for their IGP, as Nvidia has made clear their intentions to begin pushing their own IGP units.