The day before RailsConf started, me, Charles and Tom sat in the lobby of the Courtyard, coding away, fixing problems and pushing out something like 5 versions of 1.0RC2. But the final RC2 is really, really good. You should download it, test it, and if you're at RailsConf, report any bugs you find and get a cool t-shirt! JRuby is really making a huge buzz at RailsConf right now, and it's sort of overwhelming! I'm very happy about it, of course, and there is still some nice things happening. Yesterday, we got a small bug in truncating files fixed, which means exclusive file locking works now.
1.0 is looking really, really good. It should be out by the end of May, and it's going to be a smash.