I think I missed the memo on this one in March, but as I just found on the newsgroups, Stephen Sanderlin of MS Project Experts has released a new (and undoubtedly improved) version of the timesheet tied mode code onto Codeplex.

http://autostatusplus.codeplex.com/

Just making sure nobody else missed it- although I must admit that I am not entirely sure how many folks will be implementing this in 2007 as opposed to going to 2010 which comes with this functionality out of the box.