By MS: "Acrylic" is the codename for an innovative illustration, painting and graphics tool that provides exciting creative capabilities for designers working in print, web, video, and interactive media.
From WinXPNews (without highlighting): Microsoft's new rival to graphics programs such as Adobe PhotoShop and Corel PhotoPaint, code named "Acrylic," is now in public beta. It's a graphics manipulation program that has dozens of neat special effects image filters that let you make a photo look like a photocopy, watercolor, stained glass, painting, etc. You can also do all the usual resampling, rotating, adjustment of color, brightness, contrast, etc., layering, and most of the same functions (eh? most? better be all...) that other high-end graphics programs do.