Here is an article about the recent auction rate mess and how it has affected muni bonds.

http://www.bloomberg.com/apps/news?p

&

s&refer=news

You have to paste that link together to get it to work with no spaces.  For some reason, this Morningstar forum doesn't want to let us link to bloomberg.

Now may still be a good time to get into individual muni bonds because of this market dislocation, but I don't think the same can be said of muni bond funds.