I don't have a problem with a long list. I think it's important to have as much issues as possible listed in an organized place (I had forgotten about the trac, it sounds like a really good place!), so that we can see what can be fixed - sometimes multiple issues can be fixed in one go, or are symptoms of the same problem. It's good to have them all collected...
For now, I'd like to have priority on issues that are related to drawables (anything to do with visuals, lighting, etc,etc), simulation (physics), regions and coordinate stuff (Hmm, that's basically everything)
Further, usability features should be addressed as well - ambiguities in the interface and the like... Suggestions for change are welcome as well..
One day I ran through the cleft for the fiftieth time, and found that uru held no peace for me anymore.