Development on MySQLdb-2.0 has been progressing, and has recently moved to a Mercurial repository on SourceForge. This was imported from the SVN trunk. If you pull from the SVN trunk in the future, you may be disappointed.
2.0 is turning into a very major rewrite. I should have an alpha release soon. For now, the hg repository builds and passes all tests, but there are probably a few things that aren't thoroughly tested yet, particularly scrolling on cursors. I'll post more detail along with the alpha release.
Python3 support is not immediately in the works, and I probably won't work on it until I am close to a beta. At this point, I would target Python-3.1, maybe 3.2. 3.0 would probably work too.