WordPress 2.8 has officially been released and contains the latest and greatest features. Codenamed "Baker" is immediately available for download. Word Press version 2.8 contains improvements to themes, widgets, taxonomies, and overall speed.
The Word Press development team has smashed over 790 bugs in this release since the last version, which is pretty amazing.
Major improvements include the way that WordPress now does styling and scripting. You can now browse the entire theme directory and install a theme with one click from the comfort of your WordPress dashboard. If you make edits or tweaks to themes or plugins from your dashboard, you'll appreciate the new CodePress editor which gives syntax highlighting to the previously-plain editor. Also there is now contextual documentation for the functions in the file you're editing linked right below the editor.
They have also completely redesigned the widgets interface to allow you to do things like edit widgets on the fly, have multiple copies of the same widgets, and drag and drop widgets between sidebars and even save inactive widgets so you don't lose all their settings.
Finally you should explore the new Screen Options on every page. Its the tab in the top right. Now, for example, if you have a wide monitor you could set up your dashboard to have four columns of widgets instead of the two it has by default. On other pages you can change how many items show per page.