Ok, its not actually ILM "2", its Sharepoint. In case you hadn't heard, MSFT has removed the Sharepoint binaries from WS2008, starting with the Nov CTP. Instead, you have to download the installer file and load it up separately. Unfortunate, but no biggy, right?
Well, I was in the process of installing ILM "2" on the Nov CTP of WS 2008, and I downloaded the separate Sharepoint installation. But it doesn't work, failing instead with the message "This program is blocked due to compatibility issues." Notice that they're not "problems", they're "issues". Must have been written by the marketing department. 
The ever-helpful error dialog offered to check online for any known solutions, which of course, don't exist. Has anyone ever been pointed to a useful solution from an offer to check online? I don't think I have. So no Sharepoint on the Nov CTP.
And of course ILM "2" Beta 2 requires Sharepoint. So, the net of it is, you can't install ILM "2" on the WS2008 Nov CTP, at least not without jumping through some as-yet-undefined hoops.
So back to square -2, to start over with RC0, which did have the Sharepoint binaries.
Blecchhh. Yes I know its beta and I should have low expectations. But damn.
Hey look, football's on! How 'bout those Patriots, huh?