Downloading this plugin right now to test. Really, really cool.

twilightuniverse.com » Blog Archive » WordPress: Touched

Current features include:

* Degradable AJAX scripting – will function as a regular edit link if JavaScript is turned off or disabled.
* Allows you to not only edit the content and title, but also the Excerpt.
* Allows you to easily turn comments and pings on or off.

Cross-posting this also on Ajax Blog.

Update: OK, so this is REALLY REALLY cool. Edit in place is the future. Editing this right now in the published interface. Could definitely use some additional polish, but really neat.