(pasting this from an email due to high demand 
 
So, sorry for the delay, but I was at a Debian-Edu/Skolelinux meeting 
in Oslo, Norway, and I just came back to Greece.
So, to fill you all in what I'm doing right now wrt the altivec 
vectorization of Debian/Linux in general:
* I have right now a pretty generic way for applications to use a 
single binary for both vectorized and scalar code. This means the 
same program will autodetect Altivec if present and use the optimized 
code. This is for applications/executables only. It is actually a known way, but it tried to take it further by using function pointers to overload the functions I want to use...
* For the same thing to happen in a library (e.g. glibc), it's much 
more complicated to do in a proper and consistent way, but I'm 
looking into it, and I'm in constant communication with people more 
knowledgeable than I am in these things.
* On the matter of optimizations, I've been doing optimized versions 
of common routines that are used in many common programs (i've 
started with the package coreutils in debian), and also I began 
working with the vectorization of encryption routines (those that can 
be parallelizable at least). I've made an altivec version of MD5sum 
algorithm but due to the nature of this particular algorithm (it's 
not parallelizable at all), there is no speed advantage. But there 
are other routines (in library libmcrypt) which are parallelizable, 
though the process of vectorizing these algorithms is not an easy 
thing to do, and i have to ensure that 
* Once I've found how to do altivec auto-detection and optimization in 
libraries, it will be a simple thing to include the available 
optimizations in glibc and other libraries. 
* After basic optimizations are in place, we can work more on 
optimizing applications like MySQL, PostgreSQL, apache, etc.
* I can definitely say from my benchmarks so far that the minimum 
speed increase will be from 400% (in cases where vectorization is 
difficult) to 3200%!! The average is about 1000% (10x). This will be 
directly visible to the user in applications that require a lot of 
processing power and I'm pretty sure that this is what everyone wants to see eventually 

One thing I can say for sure, is that when this thing hits the street, 
it will take the market by storm and will totally change the way 
people view PowerPC as a potential Linux platform. Esp. for servers, 
given the fact that a simple G4 board will probably outperform or at 
the very least actively compete a dual Xeon in MySQL/Apache 
performance!
* I'm thinking of proposing a website/section in some existing 
website, where people will vote on some 
applications/routines/libraries they want vectorized and the altivec 
developers will work on the optimizations.
* [upd] Once I've tidied up the code/patches, I'll commit it to the pegasos CVS repository on alioth.
Of course, the only problem with this is that I have to work on this 
on my spare time, and the past 3 months have been quite busy. This 
was the only reason I have not had time to post to penguinppc.org. 
The fact I'm also working on a Debian-edu project here in Greece is 
also a factor that takes quite a lot of my time.
But I'm confident I can have some results at least on some core 
packages of Debian in the next couple of months.
 
Regards
Konstantinos