Work continues on version 8. I'm sure a lot of you will be happy with the changes. The new menu system takes getting used to but in the end it's so much faster than the old way.
One thing that isn't working that I want to get working is the NPCs. At the moment they just stand around unanimated - so don't be suprised if they're not in version 8 (sorry!).
Here's some screenshots of v8
The first one shows the new faceposer menu. Faceposer now works in multiplayer too. The second shows the duplication tool, it now duplicates ragdolls in the same pose. The third shows off the bloom and depth of field on the Valve's new Half-Life 2 Deathmatch map, dm_runoff.
I'll try to keep you all updated as much as I can.