I'm keep hoping Gingerbread (2.3) fixes it but I haven't seen anything that says it will. I remember reading a few months ago that Google would release it's music service at the same time as Gingerbread, so maybe there's a chance.
Poweramp on the Android Market is doing pretty good with gapless. They have a trial version and a $5 version. I'm using the trial right now but I think I'll buy it when the trial is over.