jME 0.6 is out now. You can get complete info at www.mojomonkeycoding.com but the biggest additions are: level of detail for all objects (Discrete and continuous), terrain and render to texture support (Imposters). Lots of other additions as well. If you want to play with webstart demos check out: http://www.mojomonkeycoding.com/jmedemo.html
Feel free to let us know what you think on the boards (positive and critical comments welcome, but positive preferred ).