You can check the status at the OpenEmbedded wiki, the page is called
OzTODO3.5.1. The issues listed there are quite serious although I have no idea how difficult they are to fix. I flashed the current sources last Tuesday and the pen calibration issue was really bad but fixable (initially the settings are way, way off but they can be calibrated with the provided tools). Also, there was a font rendering problem - most glyphs had dotted left edges. And, of course, pressing the Home key crashed Opie.
Like I said, I don't know how hard this is to fix but I re-flashed 3.3.6-pre1 after about an hour. Can't do much testing without a spare machine I'm afraid...
z.