Mod_python package now includes _psp.so which is also built and installed using distutils and does not #include <mod_python.h>. This means it can be used from command line opening the door for us to write command-line tools to compile psp pages.
psp.py has been greatly simplified. psp_interface.c renamed to _pspmodule.c to be consistent with everything else.
The flex-generated psp_parser.c now supports the syntax whereby the last indent in Python code sticks (this has been better described on the dev list). I have not received any (constructive) negative (or any positive) feedback, so for now this is where we are.