Indiana is positioning itself for this year's Best of the Web competion. New look, new features, watch out... Alabama should be competitive now also. The have made major improvements to their portal over the last two years.
Kentucky's governor just signed a new rural broadband initiative.
The new Opera browser incorporates RSS into the browser.
I guess that FirstGov liked the New Mexico travel department's site so much better than the official state site that it points there instead.
Richard MacManus writes about RSS in New Zealand government. About 20 New Zealand agencies now produce RSS feeds.