Minecraft 1.2 is out tomorrow, you can get the preview build now but the client will auto update offically tomorrow.
I can't wait.
Also more news on the server side API for mods:
The plan is to build a fresh server API, and then extend it to support client-side modding (in one way or another). We will try to make it easy for bukkit users to convert if they wish to do so, but backwards compatibility is not guaranteed. We will, however, help bukkit to be compatible with 1.2, to avoid having a long gap while you wait for the official Minecraft server to catch up.