I got around to doing some more on Dance Clone.
You can import sm (StepMania) format step files now. Its incomplete and wont fully (or perhaps even at all) work with some files but should work with the majority of sm files. I was using “Burning Me Up” (its part of one of the contest winning song packs at http://www.stepmania.com though I don’t remember which one) for testing and it works perfectly with it.
There are now five difficulty modes just like with most DDR style games.
There are a bunch of changes and additions in terms of menus. There is a title screen now along with a credits screen and now you can select to create new replacement step files for songs that already have one (rather then needing to exit the game and manually delete the file).
There is a home menu (the menu that comes up when you hit the home button) now and along with being able to exit the game and do stuff like that from the home menu you can also take screen shots with it (png or bmp format).
There are some other little changes also.