This retreat is the second in the area of wireless embedded systems. The core of the project is formed by the DARPA Networked Embedded Systems Technology (NEST) grant which involves developing a wireless open experimental platform for the program and challenge applications with fine-grain distributed control. However, the project reaches out into CITRIS, SENSIT, Smart Dust, and Endeavor efforts and is inherently interdisciplinary. The theme of this meeting will be demonstrating NEST technology - going beyond sensor networks to effector networks with elements of distributed control. It will open with a major demonstration that integrates many aspects of the project and continue with several technical talks going into depth of specific aspects.