> Is there a major milestone coming up soon?

Yes. Mozilla 0.6 is due RSN. It's the Mozilla version of the codebase used
to create Netscape 6.
 
> Are some of the nightly builds stable? How can one use a nightly build as
> a regular browser? Do any of them turn out to be as stable as major
> milestones or as stable as NS6?

Yes, yes, yes. Check the Mozillazine (http://www.mozillazine.org) Build
Bar for good builds.
 
> Do you know whether it is being worked on? 

http://bugzilla.mozilla.org/show_bug.cgi?id=41888

Hint: A Bugzilla search is often a good way to answer questions of this
kind :-)

Gerv

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