I stumbled accross this audio interview with Dan Polivy from Microsoft who talks about some of the new features with SideShow in Windows 7, most notable are TCP/IP support yeah! and Touch support.                                        

“Microsoft has shown off some crazy features in Windows 7 over the
past two weeks. Most of these additions are on the user interface
level, such as the replacement of the sidebar with simply “desktop
gadgets” which can pin to specific locations on the desktop. The
evolved taskbar (first time a major usability change was brought to the
taskbar since Windows 95 with IE4), the updated Aero features (Aero
Peek, Color HotTrack, etc.), as well as Jumplists are also usability
and “likeability” features which were added to Windows 7.

Beyond simply the looks, however, there’s also gesture and touch
support. These two will have a significant role in Windows 7, as can be
seen already via features such as Aero Shake and gesture functionality
in common controls (such as scrolling) via the the tablet framework.

Finally, Windows 7 will be much more context-aware than any other operating system thanks to a new sensor framework debuting in Windows 7.

Despite all of thiis, there are still some Windows Vista features
which have not been expanded upon during PDC; SideShow, for example,
was curiously absent. Will SideShow see more enhancements which will
increase adoption? Here’s the quick list:

• Touch support with SideShow displays
• TCP/IP support via the updated .net micro framework
• 100% Backwards Compatibility with all Windows Vista SideShow gadgets

You can hear the full answer in an audio interview I magically
recorded with the SideShow lead while at WinHEC”