WP 2.9 was out a week or so ago. We chose to hold off on auto-update as it was a fairly significant update.
However it did not come without a few issues. 2.9.1 was released yesterday to address them. All Page.ly sites are now running 2.9.1. As a customer, please take a moment to login to your site and double check everything seems to be working. Also while you are there please update your plugins as needed. Just click on Plugins in the left column and look for the Update messaging.