If we're lucky. There is not set release date, but Microsoft "hopes" to have it ready for download a week from today.

This is basically the big update everyone who's ever complained about the Dashboard has been waiting for. A laundry list of complaints have been addressed, with heavy rearranging of content on Xbox Live, fast forward and rewind capabilities for the video player, the ability to start a DVD back where you left off, and perhaps best of all, a new download manager that will operate in the background, allowing you to continue playing games or watching movies or whatever you want to do. The manager will allow queueing of up to six files and will automatically pause when an online gaming session begins.

But even that's not all. Players will also now be able to set their 360s to boot into the Dashboard first rather than automatically starting whatever game is in the drive, so you don't have to go through the whole quitting out of a game process just because you wanted to hop on to Live to download something. Players will also be able to set seperate gamer pics for their friends and general public, which is probably meant to go along with the Xbox camera coming later this year.

Surprisingly, all of this new functionality will be flashed to the 360's internal memory, meaning it takes up no space on the HD, and actually doesn't require an HD at all. Seeing Microsoft do something so right almost makes me worried about when the other shoe will drop.

Source: Gamespot