Maximum PC has a great article on what to expect in Ubuntu 8.10. Among the highlights are Gnome 2.24 (now with built-in search utility and enhanced Bluetooth support), improved graphics with X.Org 7.4, and version 2.6.27 of the Linux kernel.
Other improvements include a new network manager, guest accounts, encrypted secret folders, and better support for web audio and video.
Can't wait. Planning to install it on my Asus EeePC 701.