Even more new short selling rules now:
http://www.nytimes.com/reuters/2010/02/05/business/business-uk-sec-schapiro.html?_r=1&dbk
These are still my recommended brokers for shorting:
http://www.investimonials.com/forums/recommended-brokers-for-shorting-penny-stocks-yes-its-legal--a-good-niche-strategy.aspx