I have WP 2.6. Everything seems to be working fine, but I noticed that in my posts not all links are showing (see: http://www.shimshon9.com/2008/07/28/cabinet-comunique/) the tiny URL should show as links. If you look in other posts link are showing and sometimes not. It looks like WP is showing them randomly.
If I edit my posts the links are showing ok in the editor, but not in the Post after it is published or updated.