I have recently been able to start work on Shape2Earth Beta 3. Work so far has focused on:

Better 3D options, including Z values.
Better handling for zero geometries.
Better sorting of features based on an attribute.
Better control the symbology of the features.
A centroid function that creates a �center-point� for polygons for labeling.
Instructions on how to make sure that the shapefile is projected properly.
Ability to export a subset of the features in the feature class (such as only those in the current view, or those that have been selected).
Ability to export the view as a PNG overlay image.

I am also doing some experimenting with collada models. This can be used in conjunction with the new features found in KML 2.1 to display features at different distances as different symbols (a generic circle at a great distance would be displayed as a model when the user gets close enough to see the model appropriately).

Another interesting thing that I have been poking around at for some time is the ability to read ESRI Access Personal Geodatabases directly from their binary representation without the need for ArcObjects. The trickiest part of this was having to interpolate curves. I have this working to a reasonable degree.

http://interactiveearth.blogspot.com/