1. MythTV updated to the latest fixes (is this .20 or do we now have .21?)
Latest MythTV 0.20-fixes. One of the first things I looked at when getting involved with this project was the stability of MythTV under LinuxMCE. So I patched bugs in both MythTV and LMCE to make them play well together. I was still modifying the LMCE scripts for MythTV a few days ago to get it running a bit better. MythTV 0.21 is a great new release with lots of features, but it would have taken a few additional months to stabilize it fully under LMCE and we wanted to make that part of the 804 effort and not the 710 one..
2. VDR Integrated into LMCE (Does this mean it is automatically installed, or will there still be choices?)
During the install process it will ask if you want MythTV or VDR, and the one you select will be installed.
3. Fixed internal drive detection for MDs (does this eliminate the constant messages regarding it finding an in use drive?)
It should.
4. Upload pic for rooms is converted to png to be displayed both on page and on orbiter. (so now any image is automatically resized?)
Don't know, haven't tried this myself yet... I've mostly been testing for regressions

Also I did not see mention of 2 other enhancements important to me
a. ddamron's PLM code with PNP detection included in this release
b. jondecker's CM11A code included in this release
I believe jondecker's latest is included. But I think ddamron was a bit busy with a new job in the last few weeks to squeeze his stuff in. ddamron's stuff can be installed by an end user; well, except maybe the PNP. The plan is to combine PeteK's and ddamron's effort into a single module that can handle both types of Insteon controller devices.