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I've been switching back and forth between writing a spec for it ( https://gist.github.com/2839617 ), implementing it ( https://github.com/gavinandresen/bitcoin-git/tree/signrawtx ), writing up a test plan ( https://secure.bettermeans.com/projects/4180/wiki/Raw_Transaction_RPC_Test_Plan ) and testing.
My goal is to get all that done by the end of this week and have it in the 0.7 release. But lots of things could make it take longer.