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Toolbar PageRank updates are done on a rolling basis too now, they stopped doing massive updates every few months some time ago.

Patrick is right, PageRank is basically a completely worthless indicator. Monitoring your position in the SERPS for lots of keywords(including long tails) is the best way to see if SEO is paying off quickly.

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Any recommended tools for monitoring keyword positions?

There was a startup posted on HN recently that did this, I can't recall the name.

Honestly, it's super easy to roll your own and run it yourself. That way you're not giving up (potentially very valuable) keywords to anyone in the cloud.

Insider Tip: If you're only interested in the top 10 results, use the Ajax API to get around query limits.

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