The 360 will now have fully functioning DVR and TV channel viewer (using IPTV). Its going to be integrated directly into the Live stuff, which means you could record an episode of a TV show in the background while playing a game online or something like that. It also includes video-on-demand stuff. No word yet on the price (if any), but they've said that it "will be offered by providers that are deploying TV services based on the Microsoft TV IPTV Edition software platform."
This is a really, really cool idea. If they can make it not suck and be available for a reasonable price (hopefully free with and Xbox Live subscription), it'll rock hard. Hell, maybe the Wii will take a cue from it and have Channel Channel.
http://www.gamespot.com/news/6163829.html