Avatar Core 0.5.0 has now been released on the project page (both SVN and ZIP download). The release notes have more information about the changes made.
It should be noted that the SVN repository has been redesigned to also include documentation, examples, and a library SWC for the framework. The location of the source files have moved a couple of directories deeper as a result, so you may need to make some changes with respect to classpaths/source path references. The ZIP download also reflects this restructuring, though it only includes the source code and the same selection example as before.
"My Avatar Editor Lite" is now a new demo example. The source is currently only available through SVN, though you can browse the demo source files through the project page. A live version of My Avatar Editor Lite is also viewable online. It's a great example in that it uses a lot of the features of the framework.
I've also combined the two new demos from before (with Fred) into one demo now listed in the SVN examples. It modifies position, scaling, and rotation using mouse interaction. However it doesn't go so far as to incorporate Constrain behaviors. The original demos will probably remain on the wiki for now unless they end up becoming incompatible with new releases.
So what's next? For one, the documentation will need updating. I don't think it covers a lot of the new changes very well and is pretty lacking in other areas too. With that, also more attention given to the documentation on the wiki. Then, its just a matter of tying up and loose ends preparing for a 1.0 release for production use.