Last week we branched Moonlight for the 1.0 release, full with the licensed Microsoft Codecs and started our release process for Moonlight Beta 1 to be available in the next few days. This release is not yet published on our web site, watch this space.
The Moonlight engine team has now resumed our work on Moonlight 2.0, the version that will track Silverlight 2.0.
In the meantime, while the GUI team was busy completing 1.0, the Mono core team has been working on the security framework for Moonlight, the networking stack (Silverlight allows Socket connections using policy files) and web services (System.ServiceModel, a subset of WCF).
The security system is the trickier and is the one that has received the most attention. We started early on last year in to implementing this, as we knew it would end up burning a lot of cycles to get it right.
Moonlight is a blast, and who knows, maybe with our static compilation engine we might be able to deliver Silverlight on the iPhone.