I've just released the first beta of a new module, with the exciting and extremely inventive title: Content Profile Form Parts.
The idea is to allow users to edit their profiles without leaving their profile page; to do this an admin identifies parts of the Content Profile form the user should be able to edit, these go into Drupal system blocks and are loaded via AJAX when the user clicks a link on their profile.
Not only can users edit their profile forms in place but the form is split up into parts, this means admins can design profiles that the user can edit in-context ('Name', 'Homepage', 'Facebook' would be placed in a region with an edit link, while 'Portfolio images' would be placed in another, also with an edit link, for example).
Drupal 7
This module was built for a client on Drupal 6, so I haven't thought at all about Drupal 7 yet. A port will be happening at some point though, so suggestions/tips are really welcome.