More recent builds of Windows 7 have resolved the sleep issue on Lappy. We've also thrown 7 on the Media PC downstairs. The eye candy looks very crisp on a nice large TV. Bundled codecs meant we did not need to download K-Lite to watch any of our ripped AVI files. It also detected our wireless mouse's media keys out-of-the-box and is able to wake up from sleep when when push one, something we were missing before. Media Center can FINALLY use the timeline to move to a specific spot in AVI files that don't contain an index track. This always stopped us from using Media Center over Windows Explorer/WMP. The feature changes from Vista are small and subtle, but coupled with the performance enhancements, there's enough to warrant an upgrade from Vista.
With Lappy and Media PC sleep issues resolved, I noticed my main Win2k8 development box was no longer sleeping, heating up the office considerably at night. It turns out installing the Hyper-V role disables power management completely, the two are absolutely incompatible. While trying to switch back over to Virtual PC, I found performance of be horrible. The install of Vista under VPC was stuck in the same spot for an hour and a half. Even with all of the Hyper-V services stopped, your parent partition is still virtualized under the hypervisor. After removing the Hyper-V role and rebooting, VPC flew. Win2k8 was sound asleep and the office nice and cool when I walked in this morning.