X Server 1.8 will feature a move away from HAL with udev input handling and xorg.conf.d support. This major X Server update also has new DMX2 code and DRI2 2.2 support, but it is yet another X.Org Server update that goes without XKB2.
X Server 1.8 Release Candidate 1 contains dozens of changes since the earlier snapshots and then also what is available in the X Server 1.7 series that has been around since last October. NVIDIA's newest beta already supports X Server 1.8, but it will be many months before AMD is likely to support this updated X Server in their Catalyst Linux driver (they still lack support for X Server 1.7).
Other minor work in this release includes updates to EXA, KDrive, Cygwin/X, and XQuartz. The X Server 1.8 Release Candidate 1 announcement can be read on the X.Org mailing list. It's great to see that the new X.Org release process may actually be working for putting out timed, consistent releases.