Major upgrades to status posts: you can now set a Twitter name in the Cpanel, and once you've done so any tweets you make will appear in the status feed along with your other status updates. New privacy options have also been introduced which means you can choose whether your updates (or imported tweets) are public or for buddies only, and you will also have control over who can comment on public updates. Additionally your own status updates will now appear on your feed along with those of others, and you can search updates by user as well.
If you post an update that is 140 characters or less, you will be given the option to post the text to Twitter upon adding it. Otherwise, you will be able to post a link to your update to Twitter if you have set the post to public.