This just in from Stephin Merritt's website:
The new Magnetic Fields album is now planned for release in early 2008. The exact release date and album title will be announced shortly, as well as information on other Stephin Merritt projects. The band will probably do some US tour dates following the release, and when these are confirmed, they will be posted in the Calendar section of the website. Meanwhile, Stephin Merritt continues to work on developing several new projects in theater, including a stage adaptation of Neil Gaiman's children's book Coraline.