Limbo is....peopled by all history's unbaptised children, many gazillions more than can fit into even a big Starbucks. Limbo divides into Limbus Patrum, the temporary resting place of the souls of good persons who died before Jesus's resurrection, and Limbus Infantium, home for children who die without being freed from original sin (ie baptised). It is the latter that Pope Benedict XVI will abolish later today at a mass in Rome.
The Guardian 10/6/2006
Apparently the Pope decided to keep Limbo going for another year.
The Times 10/7/2006
Ruth Gledhill has a long discussion of the issues at The Times 10/04/2006