Bit of a late one this, but WordPress 2.9 came out before Christmas. Well worth the upgrade – especially for the image handling stuff and the ease of embedding flash content like YouTube videos.
More information in this video:
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There’s one nasty bug I’ve encountered, which is that scheduling posts fails on some hosting set-ups (including mine grr). There’s a bug fix in beta already so if you’ve not yet upgraded I’d suggest holding off until 2.9.1 comes out.