BuddyPress.org

If you check the roadmap you can see that 1.2 is unfortunately running a little behind schedule. Given some of the changes that are happening, I think a lot of us are more than willing to wait.

As for your issue, you could go and manually change the string in bp_core_time_since() to display something more appropriate than the GMT string. This would at least temporarily address the cosmetic issue until 1.2 is available.

As for the activity stream stuff, that’s rather curious. To me it suggests that there is some sort of problem sorting the activities based on their dates. When you look at the blog entries directly (not in the activity stream), do they have valid dates?