I'm happy to announce I've released lxml 0.7 earlier today! It contains quite a bit of important work, from XInclude and XML Schema support to a better implementation of tostring(). See the changelog for more information.
You can get more information and a download here:
Unfortunately there seem to be some problems compiling with gcc 4.0 due to some issues with Pyrex. There is a patch out there which aims to fix it, but it's either incomplete or lxml is doing something weird, as it doesn't appear to work with lxml yet. The lxml community is helping me tracking this one down and testing it. Thanks community; your feedback is very useful to have.
In other lxml related news, I'm going to give a presentation at EuroPython about lxml. So if you're curious and you're showing up at EuroPython, please consider coming to my talk.