I don't think we'll see a new version of Windows Home Server anytime soon. Reason being, is that it's a very niche market. You have your powerful, robust business enterprise solution (Server 2008), your home user market (XP, Vista and soon Windows 7) and your home server market for file serving and group access throughout the house in WHS. WHS is relatively new, released in the summer of 2007, and doesn't suffer from a lot of the bogged-down aspects of Vista (UAC, sluggishness), that preceded it's rushed upgrade. In fact, it's actually a very competent blend of Vista's home usability, and Server 2008's power. Those who wanted an easier solution than a Linux Samba server, but more complicated than simple file sharing in XP bought the current release of WHS, and, from those I've talked to, have been pleasantly surprised with the ease and accessibility of it. Those who didn't purchase WHS are the users happy to create groups, share files, and use 3rd party VNC, FTP, NAS, and resource sharing applications to accomplish everything that WHS offers. As such, there's simply no market for a new product in the line at this point. I would bet on a late 2010, early 2011 product upgrade.

Bear in mind, Windows 7 and Vista are built on the same core framework. As such, there would be no reason for a Windows 7 framework build of WHS. 7 is an upgrade for the tarnished brand that is Vista, with some nice eye candy and a speed boost. WHS doesn't suffer from a bad brand image. Yet another reason for Microsoft to not rush out an upgrade.
Source(s):
Assistant Technology Manager for a K-12 school. Have been using Microsoft products since Win 3.1 for Workgroups, played with WHS extensively, and have been beta testing Windows 7 since December.

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