Microsoft Courier -- whose interface concepts have now been detailed extensively in a new video on Gizmodo -- you'd have little trouble recalling the incident, thanks to fancy tools like an "infinite journal," "grid" and "search" to keep your little virtual scrapbook in order. On display are new gestures that use both the pen and fingers, and seem a little more obvious and common sense than last time around. Copying and "tucking" an image for instance (clipping it to the black binding in the center) is done with a finger, as is a swipe gesture that pulls up the browser, and another swipe that pulls up the home screen of sorts. The pen is more reserved for annotation and sketching, which seems logical. Your journals of stuff can be shared with browser-bound friends, and even packaged up into a customizable virtual Moleskine, elastic band and all. There are still plenty of missing pieces, like a virtual keyboard or pretty much any apps outside of scrapbooking and web browsing, but this iteration certainly looks a lot less theoretical and complicated than what we've seen so far.
Update: ZDNet's Mary-Jo Foley has more details from a "connected tipster" about Courier. According to her, Microsoft is running this on top of Windows 7, similar to how Microsoft Surface runs on top of Windows, and that the concept got its start as a reinvention of Microsoft's OneNote for a strictly tablet form factor. Word is that it's an "incubation project" (as opposed to a more conjectural Microsoft Research project) and Microsoft is apparently aiming for a mid-2010 release. The wildest part is that Microsoft is "leaning toward" the Xbox model of building the hardware itself, which apparently will help speed things along -- and delight hardware partners to no end, we're sure.