Some of the key software packages to Sabayon Linux 7 include the Linux 3.0 kernel, GNOME 3.2, KDE SC 4.7, Xfce 4.8, and LibreOffice 3.4. In total there's been more than 4,000 package updatss since Sabayon 6.0, which arrived back in June. There's also XBMC 10.0 support, an updated Entropy Framework, support for new languages and fonts, and semi-automated package updates.
Fusion Kernel is a new effort led by the few Sabayon developers and it's aim is to be similar to the Zen Linux kernel sources. The Fusion kernel is supposed to be a "Sabayon-flavoured Linux kernel sources on steroids." Among its features are integration of the Brain Fuck Scheduler (BFS), the BFQ I/O scheduler, Reiser4 file-system support, experimental Btrfs patches, experimental DRM patches, and new wireless-next drivers.
Read the Sabayon 7 press release for more details on this six year old Linux distribution plus download links.