Ahoy,
I checked in the change we discussed to fetch more backtrace frames by default, and use the '--more--' token to try and avoid shoving our "SWANK"-related frames in your face. I did it with a regexp on the elisp side.
One thing to look out for is that SBCL on PPC gets an error trying to format certain backtrace frames, and since this change generally causes more frames to get formatted it can provoke the problem. The only trouble case seen so far is doing "(/ 1 0)" in the REPL.
Dan's looking into it. Meanwhile, if it causes you grief you can bung (setq swank::*sldb-initial-frames* 1) into your ~/.swank.lisp to get the old behaviour back.
Cheers, Luke