From Peter Elst, Adobe MAX 2008 Milan - Sneak Peeks session, via Rufus Deuchler (co-host of Adobe's Caffe Fibonacci, which is shot on a virtual set):
"If you remember last years 'content-aware scaling' demo by Shai Avidan (a feature that incidentally made it into Photoshop CS4), stay tuned until the end of the video to see some of the amazing things he’s working on at the moment."
'Infinite Images' creates a 3D virtual space from a collection of images (starts around 55 minutes). It seems similar to Microsoft stuff mentioned earlier in Microsoft tools meld 3D and photos and Microsoft releases image stitcher Photosynth. I also like the improved search intelligence with enriched metadata (at around 42 minutes) and new ideas in compositing (around 62 minutes). Aspects of the last section seemed similar to a sneak peek mentioned last Spring (pictured above, see 34:30) where the Magic Wand tool became the Holy Grail of compositing.
And if you're into it, there's Adobe MAX 2008 Milan - Keynote Day 2 at Action Script Hero.
Update: John Nack posted additional details and a PDF on his iDisk which contains additional video.