After several years of delays, the Dual-core Itanium 2, formerly known as Montecito, was unveiled by Intel. According to the press release:

They double the performance and lower energy requirements, improving performance per watt by 2.5 times compared to existing, single-core versions.

The Dual-Core Intel® Itanium® 2 processor 9000 series delivers performance at a system scale unmatched by competing RISC architectures. It set world record results in several key server benchmarks including a score of 4230 SPEC_int_rate_base_20001, nearly triple the previous record.

The CPU incorporates virtualization features, similar to the ones found on current-generation Intel x86 CPUs. My understanding is that neither Windows 2003 Server nor Viridian will support VT on the Itaniums, but my guess is that other vendors will, especially with the enhanced CPU horsepower and memory capability of this boxes.
Also, according to the press release, the Itanium Solutions Alliance is working on new system and applications that will leverage the power of this new CPU. We've worked with the ISA in the past, for the Developer Days events,  in which we showed ISV how to port and optimize their applications for 64-bit Windows.

Link to the press release: New Dual-Core Intel® Itanium® 2 Processor Doubles Performance, Reduces Power Consumption