@StevieG
Nothing has been changed in bp-default theme from Buddypress 1.2.7 to 1.2.8. You can see changes have been made only to core files here:
https://trac.buddypress.org/changeset?old_path=%2Ftags%2F1.2.7&old=3570&new_path=%2Ftags%2F1.2.8&new=4078
If you’re unsure about updating, keep a copy of BP1.2.7 handy so you can revert back to it if anything breaks 
So whats the procedure then. If I want to use say twentyten as a theme parent, should I just copy the BP folders from bp-default (everyone is telling me the template pack is out of date)?
@stevieg, there is nothing more that you are required to do than to remove the WordPress Admin bar, that they added.
Don’t get worried over nothing, updating to wordpress 3.1 is safe, it’s been a fare share amount of time since it was updated, so plugins can update their compatibility with it also.
@Virtuali Cheers. I’m fine with 3.1 – love that only file in my child show in edit:-) My concern is with using non-buddypress themes such as twentyten and adding BP to them. I initially used the Template Pack but it seems this is not being supported. I wanted to know if all I need to do in future – when I do this for another website – is to copy the folders from bp-default to my theme. Is it that straightforward?
It’s not that straightforward because you’ll miss all the AJAX functionality from the bp-default theme; BP Template Pack just needs some lovin’.
If you can’t wait for BP Template Pack, you could copy some of bp-default’s functions.php over to achieve the same thing.
I’m also working on a plugin similar to BPTP, but I’m not putting a timeline on a release date.
