That's the codename for Microsoft's new research OS. (Well, I say "new" ... they've been developing it for "more than five years".) It's written in Microsoft's C#, which they claim prevents the possibility of buffer overruns.
"Singularity is not the next Windows," Rick Rashid, senior vice president of Microsoft Research, said in a statement. "Think of it like a concept car. It is a prototype operating system designed from the ground up to test-drive a new paradigm for how operating systems and applications interact with one another. We are making it available to the community in the hope that it will enable researchers to try out new ideas quickly."
Could be interesting. (Shame the architecture diagram in the article is too small to read, though.) Some of the features they've designed in could potentially be very good ... but they also could be very bad. (I might mention the registry as a well-known example of a good-sounding idea gone bad.)
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(footnote: there's something weird going on with LJ the past few days that's causing just-posted comments to not show up immediately, sometimes making me think the comment didn't post....)