Last night I updated my APT repository of SE Linux packages for Lenny (as described on my document about installing SE Linux ). I included a new policy package that supports logging in to a graphical session via gdm in either unconfined_t or user_t. This covers all the functionality I described as target 2 (some restricted users). I have tested this to a moderate degree.
Target 3 was having all users restricted and no unconfined_t domain (the policy module unconfined.pp not being linked into the running policy). I had previously done a large part of the work towards that goal in preparation for running a SE Linux Play Machine (with public root password)  on Lenny – but until last night I had not published it. The combination of the policy needed to run with no unconfined_t domain and the policy to allow logging in as user_t via gdm should mean that a desktop system with gdm for graphical login that has no unconfined_t domain will work – but I have not tested this. So target 3 is likely to have been achieved, if testing reveals any problems in this regard then I’ll release another policy update.
So now the only remaining target is MLS.
Also I have been setting up a mail server with a MySQL database for user account data and using Courier-Maildrop for delivery, so I’ve written policy for that and also made some other improvements to the policy regarding complex mail servers.