While Windows 7 Beta has IE8 built in, it won't be able to use the upcoming IE8 RC candidate, which Microsoft has confirmed.
First, CNET's Robert Vamosi said on twitter.com that Microsoft had told him that IE8 RC1 would not be available on Windows 7 Beta for technical reasons.
A Microsoft spokesperson later confirmed, but stressed that IE8 RC is not unavailable, but can not be installed, because the mission of IE8 RC is to test the new browser, Windows 7 Beta is used to get feedback on the new operating system, each has its own role.
Microsoft is planning to release IE8 RC to the public soon, followed by a final release sometime this year. IE8 RC will improve its features, most notably the new compatibility mode, which will come with a list of heavily visited websites that do not support IE8's default rendering mode, allowing them to run in compatibility mode without user intervention.