The current nightly of K2 revision 703 and WordPress 2.6 are working correctly together. I have not seen any issues.
A key component is the new plugin to enable the K2 SBM to work with Wordpress. The added k2-disable-widgets.php plugin brings back K2 SBM functionality that were are all used to.
Thanks to all the K2 developers!
I will re-add the tribute page to my past Audi Coupe Quattro 20V soon.
Everything appears to be working once again. Using the new release version of WordPress 2.6 and nightly version K2 RC6 r695 the sidebar manager works almost correctly.
After further experimenting, the K2 SBM does not delete added modules but you can drag them to “disabled” to remove them from showing. This is only a minor annoyance. When I try to delete unwanted module my site reverts to widget use. I have to re-select save from K2 options to re-activate SBM.
Although WordPress 2.6 beta1 did actually work, it did not play well with the K2 theme (using nightly RC6 r692). WordPress 2.5.1 worked great with K2 r692. I have grown accustom to the K2 sidebar manager over widgets since early days of K2.
A new change I have noticed, the ability to edit individual sidebar modules from actual page display with edit link versus going to the admin dashboard.
I have reverted back to WordPress 2.5.1 today. I had too many issues with 2.6 beta1 and K2. Mainly sidebar manager issues.
It’s a beta, enough said.
I added a plugins used sub-page to the About page but due to the problem previous mentioned I can not get it to display the way I would like. On the About page only.
Plugins Used
I need to add tags and catergories for my posts.
This is now resolved with K2 r703, from 7-18-2008.
I just came across a new issue between the K2 theme and WordPress 2.6 beta1 when using K2’s Sidebar Manager. When selected I can not add any new modules. I am asked for username and password when I try to change the settings for the module which WordPress does not accept. Even leaving the module unchanged it does not display.
The widgets function in K2 does work but I do not like the lack of the ability to change settings in the stock WordPress widgets so I will stick with K2’s Sidebar Manager for now.
This is a test site.
The new James Bond film looks interesting. The Quantum of Solace should an excellent installment in the revitalized James Bond film industry.
Daniel Craig has lead this revitalization with his more gritty and realistic portrayal of James Bond from the beginning of his 007 career as seen in Casino Royale
Quantum of Solace Trailer

Well, I upgraded to WordPress 2.6 beta1. Everything went smooth using InstantUpgrade 1.0-beta2 plugin. WordPress 2.6 beta1 has a few interface tweaks that add improved functionality, like the plugins page now separates active from available.
Still using the K2 theme. The most recent nightly version - K2 RC6 revision 692 works great. I tried the k9 theme from one of the K2 developers but it would not load correctly with WordPress 2.6 beta1.