From Ford's announcement today:

• Ford Sync™, powered by Microsoft Auto software, is Ford’s new fully integrated, voice-activated in-car communications and entertainment system for mobile phones and digital music players.
• Sync will be available in 12 Ford, Lincoln and Mercury products beginning this calendar year.
• Sync is the newest technology to emerge from the Ford-Microsoft relationship.
• Users can access their mobile phone or digital music player – including genre, album, artist and song title – via voice commands.
• Names and numbers in a mobile phone’s address book are wirelessly and automatically transferred to the vehicle.
• Sync can host nearly any digital media player, including the Apple iPod®, Microsoft Zune, PlaysForSure players and most USB storage devices.
  

It will be a upgradable platform to support future phones and players as well. Ford models2008 Ford Focus, Fusion, Five Hundred, Edge, Freestyle, Explorer and Sport Trac; Mercury Milan, Montego and Mountaineer; and Lincoln MKX and MKZ. The technology will be on all Ford, Lincoln and Mercury vehicles in the near future.

In more detail the features of Sync will be the following: 

• Voice-activated, hands-free calling: Simply press the “Push to Talk” button on the steering wheel, and then say the name of the person you wish to call. Sync will automatically connect with the names in the mobile phone’s contact list.
• Uninterrupted connections: No need to hang up in the middle of a cell phone call as you enter your vehicle. Simply touch the Telephone Button on the steering wheel, and Sync will instantly connect to a Bluetooth phone.
• Audible text messages: Sync will convert text messages from your phone to audio and read it out loud. The system is even smart enough to translate such commonly used text messaging expressions as “LOL” and J. You can choose to reply from any of 20 predefined responses.
• Advanced calling features: Sync includes the same features offered on mobile phones, including caller ID, call waiting, conference calling, a caller log, a list of contacts, a signal strength icon, and a phone battery charge icon – all conveniently located on the radio’s display screen.
• Voice-activated music: Browse the music collection on your digital media player, mobile phone or USB drive by genre, album, artist and song title using simple voice commands, such as “Play genre Rock,” “Play ,” or “Play Track .”
• Instant voice recognition: Sync’s advanced voice recognition technology means when you’re ready to use your phone or digital music player, just speak simple voice commands.
• Ring tone support: For supported phones, Sync will play personal ring tones. If you’ve configured unique ring tones to identify specific callers, Sync will automatically play those, too.
• Automatic phonebook transfer: Sync will automatically and wirelessly transfer all the names and numbers in a mobile phonebook.
• Multilingual intelligence: Sync is fluent in English, French and Spanish.

Read more | Sync website