Just saw the PyPy 1.2 release. I haven't had a chance to thoroughly test it, but this is great news!
I read about PyPy a long time ago and thought it was a nifty idea. I was really worried it was never going to see the light of day. At the time, I was interested in a lot of the other interesting Python language implementations that were making some news, such as Stackless, Python 3000, and more recently Unladen Swallow. PyPy has always been my favorite to keep track of, even though until recently it took quite a bit to actually get running, let alone do anything more than satisfy curiosity.
The PyPy blog has had a bunch of benchmarks lately, and the speed increases have been significant. I don't know when the project will start getting diminishing returns, but so far the results have been really impressive. I didn't know the project was far enough along to actually ship a working windows binary of the JIT improvements, so it should be nice to give it a spin.