1. What is hopefully the last memory leak has been fixed in revision 484, after a few days of investigation (turns out it involved how NPC position updates were sent from the server). At this point there are no significant remaining bugs that I am aware of, code-wise things are basically ready for the 1.0 release of the Intensity Engine.
2. After 10 days of fairly strict test-driven development (the Django test client is quite useful), the new master server is mostly complete. It should soon be usable as a replacement for the minimaster.