Yesterday, Pope Benedict XVI reversed traditional Roman Catholic teaching on limbo, that borderland between heaven and hell, by approving a Vatican report that said there were "grounds to hope" that children who die without being baptized can go to heaven. Full story
here. Theologians had long taught that while children who die without baptism would not be in communion with God in heaven, they do enjoy an "eternal state of perfect natural happiness" in limbo. It probably looks something like this:

Oh wait, wrong limbo.
The Vatican report doesn't carry the authority of a papal encyclical, and it was stressed that "no one can no for certain". So limbo may be, well, in limbo for now. However, many (including myself) consider the Pope's decision to be both "sensitive and significant".
I like the statement by Rev. Richard McBrien, Notre Dame theology professor: "If there's no limbo and we're not going to revert to St. Augustine's teaching that unbaptized infants go to hell, we're left with only one option, namely, that everyone is born in the state of grace."