A few days ago Microsoft quietly released a tech demo of their new Scalable Fabric program. Scalable Fabric is a window management tool (not to be confused with a window manager) for Windows XP and Vista that allows you to scale down your windows instead of minimize them.

Basically, your windows act normal when they are full screen, when you restore your window, they still act normal. But if you drag them out of the blue boundary line shown above they begin to shrink and get smaller the father they get from the blue boundary line. You can group related windows and restore or rescale them at a click of a button.
Surprisingly, if you play a video and scale the window, the video will continue to play. The video playback is jittery, but keep in mind that his is just a tech demo and isn't fully polished.
If you want to read more, you can go to >this< post at LogicalExpressions, and you can download Microsoft Scalable Fabric >here< from the Microsoft Research Center.
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