Xubuntu community project's aim is to provide a nice Ubuntu desktop experience (even on older hardware) by using Xfce4 as the desktop environment and GTK 2 applications wherever possible.
Xfce4 has been supported in Ubuntu's universe by the MOTUXfce team since Hoary and Breezy. For Dapper we want to go one step further and make Xubuntu a sibling of Ubuntu, Kubuntu, and Edubuntu by having install and live CD images generated for it.
As Ubuntu has a delay of six weeks with a new release date of the first of June, Xubuntu should be released at the same time and should use the latest stable Xfce 4.X code (hopefully 4.4 will be released by then).
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