The Windows Vista Team Blog has some good news about the new Windows Mobile Device Center for Windows Vista:
Windows Vista Beta 2 features built-in support for Windows Mobile-powered devices for the very first time with the new Windows Mobile Device Center. Instead of installing ActiveSync to use our devices, our device drivers are now part of Windows Vista. Due to this built-in functionality, installation of ActiveSync is blocked.
Windows Mobile Device Center can perform “Guest” functionality similar to ActiveSync, but with some new and exciting features. With Windows Mobile Device Center, you will be able to browse your device, synchronize media using Windows Media Player, and even play media files and view pictures and documents directly from the device. Our devices will be able to connect with Windows Vista via Bluetooth, USB or infrared.
An update to the Windows Mobile Device Center will be available shortly on Windows Update. With this update, you will be able to create partnerships and synchronize your Windows Mobile-powered device with Outlook. Stay tuned!
This has been one of the key missing features in current betas of Windows Vista. I’ve had to boot into XP using a copy of my Outlook Personal Folders file just to sync up contacts and appointments – a significant PITA, needless to say.
I’m also pleased to see Windows Update being used as a way to deliver new functionality like this. No need to wait for a new nbuild – just download an update.
Ed Bott 
I was just wondering about this very thing last night as I tried to install Activesync. Hopefully the update will come soon. It’s functionality that I currently miss.
Will the new Windows mobile device sync drivers in Vista support synchronization locally over WiFi?
This used to work in earlier versions of ActiveSync, but the last update removed it – Microsoft app note says it was removed “due to security requests from enterprise customers”.
this is ridiculous because PDA’s do full sync OTA on wireless public networks so it simply doesn’t make sense that a private local WLAN using WPA (or other) security is considered a security risk while public OTA sync’ing is not!
the end result – when I’m sitting at my desk and I want to sync my SmartPhone pda I have to do it OTA using 3g wireless network instead of the faster/easier WiFi lan or go dig up my usb cable and futz with that.