I've just put up nose 0.7. Grab it here.
This is a fairly substantial -- and experimental -- update, with several classes removed (the custom test runner and result) and the methods of test discovery and output capture seeing big changes.
Test discovery now looks for tests within all packages found in the working directory, so if you organize your packages with tests inside the package (including subpackages in the package), nose ought to work much better for you.
Output capture now works by patching the builtin Exception class. This means that it works in more circumstances -- significantly, when using nose.collector as the test suite via 'python setup.py test' -- but is also, obviously, more intrusive than the previous approach, which only used a custom test result class. This change is considered experimental. If it causes more problems than it solves, I'll most likely roll it back in the next release.