Note, RC2 has been released, however it contains minor updates to RC1, so the infiormation below pertains to RC2 as wellWe're basically "there", packed with options (specially the administrative section), this release is practically "ready" for production.
The updates in this release contain:

Order of topic responses changed to ascending order.

Pagination for both forum listing and topic listing (number of threads/topics per "screen" controlled via administrative interface).

Fixed "broken image" placeholder in topic view page for users without an active avatar

Personal Messages now work.
From the administrative screens you are able to:

Manage categories, add/edit and change category properties (publicly visible, hidden, etc).

Manage Forums, change the category that a forum belongs to with a single click, edit permissions, hide them, make it active for members only, or admins only, you have control, for example you may give access to add topics in a forum to administrators only, but any member can reply to these added posts, etc.

Manage topics, edit topic properties, change owner, dates, set a topic to be "locked", or "sticky", or set a topic to show also in the "System Announcements" section of the forum, allow a topic to be shown in the RSS section, or hide from there with just a checkbox, etc.

User administration, see who has posted more topics, who has replied the most, disable users, re-enable them, change their passwords or any attributes.

Inappropriate topic management - Allow users to report inappropriate topics, control the list, take action.
So what is left to release version 1.0?
Well, the code is new, there is a good amount of code written for this app, so pesky bugs can be still lurking around, so I'll keep this status until I have some assurance that most of the issues (if any) have been resolved, for now I invite you to create an account and start posting away, who knows, we may even turn this forum in web2py (and any other python-related system) official forum. Cheers,
Julio