"Despite Microsoft's repeated denials, the company will indeed release an interim version of Windows XP that will bridge the gap between the initial XP release and Windows Longhorn, which is currently due in late 2005 at the earliest. The interim XP version will ship as a new retail product that replaces existing retail boxed copies of XP and as a set of updates, called XP Reloaded, that existing XP users can install separately," according to Paul Thurrott's WinInfo newsletter.
Joris Evers of IDG News Service has followed up the story here with a quote from Greg Sullivan, Microsoft's lead product manager for Windows, who says: "We're looking at what our options are in terms of delivering what our development team creates in terms of new technologies to our customers. This is not an announcement of a second edition of Windows XP."