Sorry to not bring a solution, but I wanted to weigh in that I’m seeing the same problem.
The “Internal Server Error” only happens on the live WP site (running 2.9), not my local development machine. It’s also rare and intermittent. It sometimes happens when posting, maybe about one in 10 posts.
I’ve also seen it happen once or twice as an external user just browsing blog posts, which is a bit scary.
-ALJ