Ubuntu 7.10 (Gutsy Gibbon) has been released - there are news articles everywhere, even in the mainstream press. I've been running the beta for a couple of weeks on my laptop. It works as well or better than the previous version and Windows Vista for pretty much everything. Suspend/hibernate work great, wireless is good (though I have to use the Windows driver with ndiswrapper), and they've finally got a working driver for the really stupid Intel sound card in my laptop.
The only thing I still need Windows for these days is iTunes (there are replacements, but none properly handle video podcasts) and stuff on the web that requires Internet Explorer (some kids games for my daughter on treehousetv.com and nickjr.com, some work stuff that has ActiveX controls).
I will probably just use VMware Server for those, since the laptop has 2Gb RAM and 2Ghz Core 2 Duo. But for some reason Ubuntu still hasn't updated their partner repository (the new name for the 'commercial' repository) to include vmware-server. Hopefully they'll get that soon.