We are working on an ecommerce site running on drupal. It is a unique combination of blogging and selling. You can check it out at http://proxyretail.com .
We have modified drupal’s ecommerce module to meet all the requirements of the site. The site has been integrated with Paypal and authorize.net for processing payments.

Drupal 4.7.0 beta1 has been released yesterday. WE have to port all our modules to the new version since there are a lot of changes in the core apis.
Stay tuned for information about releases.