The latest stable build of CyanogenMod 7.1 is out, and it has support for Android 2.3.7 as well as 68 devices now. Above is a video of the CM sessions at the Android BBQ. Here is a list of the newest supported devices:
  • HTC Desire S, Incredible S, Incredible 2
  • LG Optimus 2X and T-Mobile G2x
  • Motorola Backflip (Motus), Cliq / Cliq XT, Defy, Droid 2, Droid X
  • Samsung Captivate, Fascinate, Mesmerize, Showcase, Vibrant, Galaxy S, Galaxy S2 (multiple carriers)
  • Sony Ericsson Xperia X8, Xperia Mini, Xperia Mini Pro, Xperia Neo, Xperia Play, Xperia Ray, Xperia Arc
  • ZTE V9

Here is a list of some of the newest features:
  • Bluetooth mouse support
  • revoking app permissions
  • camera touch-to-focus
  • native screenshots in the power menu
  • upgraded kernel and Android v2.3.7

Here is the full Changelog. And, here is a download link, CyanogenMod 7.1.

Another bit of interesting news to come out of this is that the Honeycomb version of CyanogenMod 8 will likely be bypassed altogether in favor of the Ice Cream Sandwich version which is CM9. This means we will likely never even see CM8 released at all.

Source: AndroidPolice