According to Ray Gan (read his blog), JAVA SE 7 code named Dolphin (The Dolphin Project) is to be started in late July on java.net. The release of Dolphin is planned to be in 2008.
Further non critical bug fixes, and API changes would be considered for this release.
The current version JAVA SE 6 code named Mustang is to be shipped in September this year. The current development means bug fixes only and is expected to have update releases every three months.
Ravith's Blog 
What am I seeing, Java.NET i just went to the Dolphin Project, there was no info abt it. Should i be excited abt the word .net after java or should i be excited abt the word “Dolphin” (u know what im talking abt)
why dont u give us a briefing abt these stuff
Amen, Brother
It is not java.NET but java.net meaning the java development community. I think you are excited about both.
Hmm… i think my dream of unified programming just went down. The moment i saw Java with .NET i thought my dream came true, think abt languages working togeather, where everyone works togeather to enhance the current language, without putting out new languages then and there. more innovations and sharpeneing to a single language will make it the default programming language for everything and the burden of learning languages will be reduced
Amen, For United Programmers 😉