GeoServer 1.7.4 has just been released. The announcement bog entry can be found here. New features include:

• WMS decorations (ie. absolute rather than geographic annotation)
• Label conflict resolution can be turned off for selected labels
• Custom raster legends via GetLegendGraphic
• Tolerance of GetFeatureInfo is now configurable
• GetFeatureInfo observes the filters in the SLD

The alpha2 release of GeoServer 2.0 was released last week. Downloads, documentation, and release notes can be found here. This includes a new user interface based on the Wicket framework, as well as streamlined workflows and updated data directory structure.