There are clearly several major issues on the network at the moment that I will be spending the day resolving. The first is that there is still a large number of people using the old client, causing lots of invalid blocks to be mined. The second is that a checkpoint on an invalid fork is floating around the network and needs to be invalidated: please leave checkpoints turned off until a fix is released. An update solving these problems will be released as soon as I can ascertain that nothing else is wrong.
If 1gh continues to mine on their own fork it will be a sad loss to the network.
Thanks for the patience guys.