At the 11/05 milestone (the first release),  you have your basic development and live environments up and running.  You have have deployed some features, but it is not required.  Everyone that is doing development should have checked in some code at this point.  Minimally, if you are doing a web app, you should have a home page with an "About" link to a page that lists all the team members.  Ideally, everyone on the team should have checked in a change to the About page that shows their name.  This all that you are required to do -- hence we call this a "Zero Function Release."