jvaughn: I'm one of the developers.
A wide variety of issues delayed the release of LinuxMCE for Kubuntu 7.10, well past the release of 8.04. So we've decided to target 8.10 for our next major release.
I would honestly recommend, if you are interested in installing this system, to (1) use the quick install DVD, and (2) closely follow the hardware and network design requirements for using this system. It is much more than a media center, it is a smart home platform, the first of its kind, and as such, has very specific and rigid requirements.