Kye version 0.4.0 is now available. This version is mostly a major overhaul of the GUI code, tidying up the menus and dialogs (and moving toward having it working on Windows). I also fixed a bug in the installation, which caused the editor not to work right when installed.
I have switched to using .tar.gz files to store the tile sets: the zipfile module had strange problems on Windows, and using .tar.gz makes them much smaller. I have changed over the alternative image sets on the download page to the new format, so if you downloaded them before then you will have to get them again.
The other significant change is that this version needs gtk 2.6 and pygtk2.4 or better, due to the GUI code updates. Most of the distributions have these now, so I doubt that that is a problem for many people.