A grab-bag of things about government and Web 2.0
Wikinomics - Government of Canada and the Web 2.0 reports on a study done for Agriculture Canada
Library Boy - Federal Library Community Forms Web 2.0 Interest Group
Public Sector Marketing 2.0 - Update on Social Media Policies in the Canadian Government (January 2008)
If you want the latest official word, you probably want to go to the keynote by Ken Cochrane (CIO GoC TBS) at GTEC 2008.
The GTEC 2008 theme is "Make the shift to Government 2.0".
Also interesting in the lineup is "NRCan's Collaborative Technology Revolution" by Marj Akerley, Chief Information Officer, Information Management Branch, Natural Resources Canada and Peter Cowan, Director, Enterprise IM, Natural Resources Canada.
NRCan has a fully running internal wiki.
TBS is moving quite quickly to support intranet Web 2.0 with policy.
Internet Web 2.0 (for the Government of Canada) is quite problematic however. But it appears to me that you're better off taking a leadership role and just experimenting with things, and seeing the results. I think people are afraid the policy police will come punish them, whereas it appears to me more likely that they will get an award for technology innovation.
It's still a challenging situation because unfortunately most of the Web 2.0 services are hosted in the US, and this creates privacy and control issues if you're gathering any information about Canadian citizens. For example I use Typepad, Blogger (Google), Feedburner (Google), Google Analytics, jot.com (Google), Google Docs... hmm, it sure would be a nice start if Google Canada just set up a dedicated data centre here that they could guarantee would never be subject to US legislation...