Most TeX distributions (TeXLive 2008 and MikTex 2.7) have now been updated to support SyncTeX. The option is activated with the -synctex switch at the command-line as follows.
The author of the pdfsync TeX package, J�r�me Laurens, has developed a new technology called SyncTex that will eventually replace pdfsync. SyncTex is directly integrated in pdftex. This has many benefits: there is no need to load a special package in your .tex document, there is no more incompatibilities with latex packages, and the synchronization is more precise. One disadvantage is that the generated synchronization file can be huge, and for that reason it has an option to zip it.
This is the dual of the previous post: I have now implemented forward-search in SumatraPDF, i.e. the ability to go from the source .tex file to the corresponding location in the PDF. The communication between the TeX editor and SumatraPDF relies on the DDE protocol. (Most TeX editors such as WinEdt and TeXnicCenter support it.)
I am currently in the process of writing up my PhD thesis using Latex. I just realized how spoiled Mac users are when it comes to TeX tool support: nearly all Tex editors support viewing PDF files with source synchronization.