It looks like those developers who had hoped for a version of C# suitable for systems programming are about to get their wish, judging by this blog post from Microsoft's Joe Duffy:
Although the aims of the 'new' language are outlined in the blog, disappointingly, there are (as yet) no code samples.
However, there are some indications of how the new language will handle errors in another blog post by Aleks Bromfield who used to work with Joe Duffy on the project:
It appears that the new language (referred to elsewhere as M# though not by Duffy himself) may have been used to develop the Midori operating system and there has been speculation that there could be 'something afoot' there as well:
However, the Update to Joe Duffy's blog post warns against taking notice of such speculation.
We're certainly living in interesting times just now!