Word over at
ZDnet is that Microsoft have temporarily delayed work on their upcoming Photoshop rival application, 'Expression Graphic Designer'. General reasons for this move include redistribution of resources to get Vista and the new version of Office out in time... both of which will probably honestly be much more important for Microsoft than releasing a new rival application into an Adobe-dominated market.
Still... you can't blame them for trying can you? You can read the full article
over here.