I finished working through the second draft of the first half of Act Two. The last two chapters aren't great and may need to be redone but that's because I'm setting up things for the second half. As soon as I get a new printer I'll print out chapters 21-30 and do a third draft read-through and see how it stands.
I was rejected by F&SF and Weird Tales this week, which was nice. Those stories are going elsewhere now and this weekend I'm doing a final draft of Promises, Promises which is looking to be a very strong story if I can just get the ending right.
Joe Abercrombie has a great entry on his blog about his second drafts. In a word, Intimidating.