This article is a bit lacking in detail.
To clarify, MS proposed solution is apparently similar to the one the EU requested all along, that is, that, during the OS installation phase, the user is presented with a choice of browsers and he/she selects the one(s ?) he/she wishes to install. The user will also have the possibility of deactivating IE.
For the OEM market, where the OS comes already installed, I suppose that the same will apply, i.e. during the after install phase, the same, so called “ballot screen”, will be presented.
It was also mentioned elsewhere that existing installations of XP and Vista will also have this ability, via Windows Update, I suppose. In this case, since the OS will usually already be installed, the user will asked if he/she wishes to install another browser and deactivate IE.
The EU is analysing MS proposal and will say if it is OK, or not.
Opera, the initiator of this EU action, already said that it is pleased with the proposed solution. As long as MS plays this correctly, everybody should be pleased.