Inside Sharepoint

I'm sure there are more to ask, but here are some answers they should supply (or thereabouts):

1. The purpose of SharePoint Products and Technologies is to provide an easy way to disseminate information to employees in a collaborative environment. Also, a way to provision sites and workspaces, data, security, etc without the developer bottleneck.
2. IIS is used to render SharePoint content from the database to the end-user. Exchange can be used as your outgoing email server for alerts, and also can be used in MySite for user email integration. ISA is your firewall, and can have publishing rules defined specifically so SharePoint can be securely viewable via an extranet environment
3. Exchange Public Folders are being phased out for SharePoint. SharePoint can have the same characteristics as Public Folders, such as document libraries to store documents, discussions, announcements, public calendars, etc. By default Exchange 2007 does not have public folders turned on.
4. Whenever Office 2003 + is installed locally, some features (such as multiple upload) lightup. Also, within MySite, a user with Office 2003 + will get a prompt to basically integrate MySite as a new placeholder location within the Office 2003 + save as dialog (the left-hand side large location icons). Office 2007 has the capability of doing Server-side properties, local drafts (a downloaded version of the document for offline editing), and publishing (for example to a blog)..
5. Some answer goes here. Determine whether he is BS'ing you at some point.
6. If it doesn't seem to be going anywhere, don't both with this question. Also, I can't stress enough how much you need them to feel they aren't giving you free consulting, so definitely erase their proposed implementation in front of them, so they know you are not looking for a free lunch. Obviously you need to briefly describe your organization for this to work. Hopefully they come up with something worthwhile. Site collections are security and quota boundaries, so I always use a department-based site collection architecture. I would (depending on the number of employees, departments, etc) probably recommend the root site being the generic company portal, and then creating site collections under /departments/ managed path. Basically an architecture similar to http://server/ - CompanyWeb, http://server/departments/hr/ - HRWeb, http://server/departments/it/ - ITWeb, etc.