In ConfigMgr 2007 with R2 it was possible to import App-V packages and stream them to the end user. There was also the possibility to choose between streaming or local delivery for that. Have a look at this blog for more information about ConfigMgr 2007 with App-V integration: http://henkhoogendoorn.blogspot.com/2010/12/configmgr-2007-with-app-v-integration.html
With ConfigMgr 2007 Release 2 (R2) it is possible to add App-V packages to the ConfigMgr console, and advertise them to ConfigMgr clients. With that functionality, no additional App-V Management or Streaming server is needed anymore. Now there is one solution for managing and publishing MSI-based & Virtual-based applications! I will explain in this blog what to configure in the ConfigMgr console, and how the App-V packages will be published to the ConfigMgr clients.