bzip2-1.0.3 has been released 15 February 2005. you might wonder why this has not been mentioned on "official homepage" -- well, me too. Looks like they moved to www.bzip.org
ah, thanks for the heads up 1.0.3 now in portage and i e-mailed our local fixes (which still apply to 1.0.3) to the new upstream e-mail