PennMUSH 1.7.7p40 has been released and is available in the usual place. This release includes a rewrite of the chunk allocator (which requires that you modify a mush.cnf value!), a couple of new commands/functions, a tweak or two, and several bugfixes.
This is expected to be the final release of the 1.7.7 series. If all goes well, the new version series will start up next month. There should be patchfiles to the new series from 1.7.7p40 and 1.7.6p16, so this is a good time to be sure you're patched up to one of those levels.