0.4.1 FLY-0.4.1 is available for download.

A fix was made to how mkxf86config configures xorg.conf so that it reads mouse information from /dev/psaux rather than /dev/misc/paux This allows the mouse to be detected and functional in the GUI. No promises that ALL mice will work though, so get testing!

Edited a few of the Fluxbox config files to patch up a few things, notably getting rid of the fbsetbg error once Fluxbox starts.

Added USB HID support to the kernel which should allow USB mice and keyboards to function. And added drivers IPW3945 and Madwifi-ng for wireless cards.

The compile time for this version of FLY was just over 10 hours.
The large (9mb) increase in ISO size is mostly due to the (I think) ATI drivers. The binaries for these were 55mb, whereas nVidia's was about 10mb.
Devlog 
0.4.1 (released June 11th 2008)
ISO size: 182mb
Total packages: 305
Added ipw3945, madwifi-ng
Added =x11-drivers/xf86-input-virtualbox-1.5.6 to /etc/portage/package.keywords
Added =x11-drivers/xf86-video-virtualbox-1.5.6 to /etc/portage/package.keywords
Added =net-wireless/madwifi-ng-0.9.4 to /etc/portage/package.keywords
Added =net-wireless/madwifi-ng-tools-0.9.4 to /etc/portage/package.keywords
Added the following input drivers
  x11-drivers/xf86-input-virtualbox
Added the following video drivers
  x11-drivers/xf86-video-virtualbox
  x11-drivers/ati-drivers
  x11-drivers/nvidia-drivers
Modified /etc/issue
Modified /etc/locale.gen
Modified /etc/X11/xorg.conf.in
Modified /root/.fluxbox/init
Modified /root/.fluxbox/menu
Modified /root/.irssi/config
Modified /root/.conkyrc
Removed /root/.fluxbox/lastwallpaper
Built in kernel support for:
  Device Drivers
    HID Devices ->
Moduled the following in kernel:
  Device Drivers
    HID Devices
        Generic HID support
        USB Human Interface Device (full HID) support
    Graphics support
        Direct Rendering Manager (from built-in)
Updated the following ebuilds:
    sys-libs/timezone-data-2008b from 2008a
    app-portage/eix-0.12.4 from 0.10.5
    sys-devel/bc-1.06.95 from 1.06-r6
    app-misc/livecd-tools-1.0.40 from 1.0.40_pre3
    sys-apps/man-pages-2.79 from 2.78
    x11-terms/xterm-235 from 234
    dev-libs/openssl-0.9.8g-r2 from 0.9.8g
    sys-libs/com_err-1.40.9 from 1.40.8
    sys-libs/ss-1.40.9 from 1.40.8
    sys-fs/e2fsprogs-1.40.9 from 1.40.8