On Tuesday a new version of the 360's dashboard is going to be released. In this release the big new features are "Friends of Friends" where you can view who your Friends have as Friends on their Friends list. A timer so that parents can dictate how long their offspring can play games for. And the much requested DivX and XviD video codex support is being added so that you can brows and stream AVI video from a PC to whatever large television you might have connected to your 360. If you want to see the complete list of changes Click Here.
GamerScoreBlog (which is run by Microsoft PR) has put together a rather good video preview of the whole thing.