Don Box just posted an introduction to Service Contracts in Indigo. This is sooo very close to our latest WSE 2.0-based work that it'll be extremely easy to port our tools to Indigo when it's released. I really like the MessageContract stuff and the fact that you can define typed messages and also specify the properties of the type that should be treated as headers and bodies. This is exactly what our code-generation tool does now for WSE 2.0. The difference with what Don describes is that we are using our own service description language for contract-first development and not WSDL. This language has been the focus of what we've been doing for the last couple of months.
(I know that I've been promising to say more about this work for some time now. If all goes well, I think tomorrow may be the day.)
Update: So, it looks like it's going to be Tuesday.