The last time I've heard something about WPF/e was at the Mix conference this year in Las Vegas. Because of all the noise around WPF, and some really good community sites which started showing up and were mostly dedicated to WPF, I almost forgot about WPF/e.
Several days ago I searched about WPF/e and found a blog post by Joe Stegman
who says that an external CTP is expected to be released soon. I've been waiting for quite some time to put my hands on WPF/e and see exactly what are its limitations comparing it to its big brother - WPF. I also wonder whether the next CTP of Expression Interactive Designer and the extensions for Visual Studio 2005 will support WPF/e.
Hope to get the answers to these questions soon. If you have any information, please share it. I will be happy to learn more on the current state of WPF/e.