Recently updated to the newest 2.0.0 version. I am running Ubuntu 8.04 as my host OS, and Windows XP as the guest. The guest is an older machine, but I reinstalled guest additions so they are at the latest version.
Seamless mode was too troublesome earlier, with host panels getting hidden by guest. Now it seems much better, in fact it almooost works.
When I am running in seamless mode, the panels are now displayed correctly - as long as I don't have a window maximized and active in the guest. Which, of course, happens to be a common case for me... in fact, almost the only case.
The panels are still there, but they are blank. If I click on them, they reappear, but then I can't interact with the guest.
With an active, maximized window in the guest, note that there are grey areas at top and bottom, where the panel should be:

Exactly the same, but the window minimized/inactive:

So, the question is, first and foremost: am I doing something wrong, can I adjust something to fix this? If not, I'll go file a bug.
All in all, a solid release so far, and I am very happy with it. Thanks!