Apple is going to be updating iLife very soon and it's going to be much bigger than before.
iWeb - they may look into Social-Profile Networks though this may not be in this upcoming build. iWeb will have much more control over your content such as publishing privately or to everyone. This will be a major area of improvement. It will also have much more versatile pages, so it can be used for things other than Blogs, Photos and Podcasts. This will probably mean customizable templates or the ability to add your own templates. Also, the ability to add 'Web Widgets' to your pages.
They will make Publishing, even to 3rd Party services much more easier than in Version 1.0. They'll also upgrade .Mac iDisk size soon to accomodate for photos, movies, podcasts.
iPhoto - iPhoto too is getting a great update. They're going to be upgrading the print services, as usual, giving a lot more choices as well as choices in how you print your photos - this will be a lot easier in iPhoto 7.
iMovie - iMovie is getting cool updates, in terms of the video effects. It will have the 'Backdrop' feature, similar to what was shown in iChat at WWDC 2006, as a capture effect (similar to how Time-Lapse is seen as a capture effect), so you can do blue-screen effects without the hassle. Also, the ability to drop photos onto a clip and have it stay there hovering over the clip, not have it act as a frame. May also integrate to Garageband to tackle video podcasting.
Garageband - updating the Podcasting studio, especially video-podcasting. Lots more jingles, nice vocal samples included. Publishing the Podcast will be much easier.
iDVD - more themes, better integration with iMovie
Also on the iPhone...Apple is looking to really try and make syncing it with Mac OS X really easy, especially Video and Photos. The iPhone will record videos on its 2MP Camera as well as photos and Apple is really working on this area of the iPhone.
That's all folks