The Software Development Manager (sdm) is separate, and has a lot of duplicated functionality. I was thinking of merging BITS and SDM, but I'm not 100% sure anymore that this is the right idea. BITS can be used to do things like help-desk management, stuff that is not software related. SDM is entirely software-related, with an enforced release process and such. So, you shouldn't expect a big merge anytime soon, cause both pieces are working happily at their own specific tasks.
Now, on the status of each. BITS is working really well now with a bunch of new features. The entire admin/ directory is gone from new-ticket because it was a stupid way to do things, and now the admin functionality is folded into the top-level new-ticket files. The SDM is also undergoing some major improvements, most notably with a CVS interface, patch management, and more cool things. SDM basically replaces SourceForge functionality (ahem, did I say that out loud?).
If you want to work with stable version of both, I recommend holding off until the full release of OpenACS 3.2.2 next week. We'll do as much as we can to keep things compatible in later versions.