Being on the tail of the patent infringement discussions about Novell and Linux this speculation about positioning Microsoft to "unravel Linux's momentum" would be bound to attract attention. However, Susan points to an entry on the TechNet blog:
"Fresno? No, no Fresno.
The team has noticed a few press stories and blog postings speculating about an upcoming product based on Windows Server "Longhorn" called "Fresno." We're not sure where the idea originated, but to set the record straight there is in fact no such Windows Server product in development. For now, Fresno will simply remain the "raisin capital of the world."
Thanks for the update, Susan!