For the latest information on the situation in Oaxaca, please visit this online discussion hosted by Planeta. It's a great source on what's been going on and reading the perspectives of people who actually live in Oaxaca.
The news flowing out of the state has mostly been unfavorable, but according to people I've spoken with in both Oaxaca city and the coast, it's safe to visit - even though the U.S. and Canadian governments advise agaisnt travel - and locals are going about their lives as best they can.
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