The free library has mostly been merged into the main webscription web site.
And Eric Flint has been ill, and then very busy.
However, it seems that a couple of titles got added in August 2010 (although for some strange reason they're listed second in the "What's New" section.
I'd suggest that you go and join in at Baen's Bar (
http://bar.baen.com/) and ask directly.
I haven't got the impression that Baen is having any troubles. I think they'd rather like to get more slots per month from their distributor for their paper copies.