This is something I haven't seen picked up much by the tech press writ large: Invisible Things Lab, headed by Joanna Rutkowska, has released a new Linux distro called Qubes.
UPDATE: Qubes has been around in alpha form for a bit, but this is the first beta release...
It uses hypervisor partitioning to give you that warm, fuzzy feeling that comes with operating in a virtualised environment. Heise Online has a nice little writeup here and you can find the beta here.
This is a really interesting release. If this OS turns out to be workable I suspect major software developers will take a bit of notice. I've been prattling on about the need for desktop operating systems to make use of virtualisation for greater security for yonks. Now we get to see what that looks like.
If you've had a play with it, let me know what you think.