ok, so 2.0.4 continues to work but the changes in 3.0.0 have broken something. :-( More testing required ... (Currently blaming incomplete transition to libsoup which also breaks livejournal and some others).
New HTML Parser: The long-awaited libxml2 based HTML parser code is live. It needs further work but already handles most markup better than the original parser.
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If you're a C programmer with some spare time, take a look at the mod_virgule project page and help us with one of the tasks on the ToDo list!