Yes, the official news is that Windows 7 will be able to burn an ISO without any third-party application needed. This is great (and long overdue) news to those of us who download ISO (disk images) of beta builds of Windows, and other software. Much of the content on TechNet and MSDN is in ISO format, so this is welcome news to IT pros and MVPs alike.
Previous to this, one would have to use a freeware application like Alex Feinman’s ISO Recorder or a paid suite like Nero or Roxio.
More on this over at the Windows Blog: