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I have good reason to believe that MS have an SVG project underway. But I don't know enough to be clear whether it is adding SVG export facilities to .Net servers and/or adding SVG viewer capabilities to IE. It might even be adding SVG facilities for mobile platforms. Or all of those. :) 
 
MS are keen at the moment to claim that they support open standards, and XML is one of the cornerstones of .NET, so SVG out of .NET is unavoidable. The big accelerator would be an native IE viewer though, which IMHO is pretty likely for various reasons. I would think that most developers (including those at MS) realise that SVG has pretty much left VML dead in the water. A poke in the eye for Adobe is pretty good motivation for MS, but I wouldn't be at all surprised if they were interested in taking over some of the Macromedia space with SVG as well.
 
Incidentally, if you take a look at the author list of the SVG 1.0 spec, you will see representation from MS, Sun, Netscape, IBM, Opera, Macromedia, Corel etc etc.
 
Cheers,
Danny.

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