After much experimentation, and the upgrade to 2008 internals which keep feeling better (just about broken in I think), I've settled on 80 psi in the air spring and 45 psi in the spike valve. The latter was critical for me to get decent small bump compliance. Rebound full fast, and compression damping to suit the trail. I weigh 155 pounds. The bike is performing better than it ever has.
Interestingly, with the above settings, I rarely use full travel during a ride; however, if I set the air spring to 70psi, or even 65psi, I will use full travel but the ride itself feels less plush! I guess this is because compression ramps up midstroke, so with less air pressure I deprive myself of initial plushness. It was counterintuitive to me that higher pressure and less travel utilized would result in a plusher ride. I find the same with the AFR shock, incidentally.