After much complaining and being generally annoying to the WordPress writers and coders I decided to upgrade to 2.0.1
Trackbacks seem to be working but I will have to do some more tests.
Also, word press is flawed in the way that if both a trackback and a pingback goes to the same blog the trackback gets suppressed. I changed execute-pings.php so that trackbacks go out first to see if that will avoid that from happening.
More testing and possibly complaining to come. 😉