New release 0.8 final pushed to updates-testing for F7, does this new release
still have this problem?

Yes it does.  pygtksourceview isn't a F7 package.  Python bindings to
gtksourceview are in gnome-python2-gtksourceview for F7.

pychess-0.8-2.fc7 has been submitted as an update for Fedora 7

pychess-0.8-2.fc7 has been pushed to the Fedora 7 testing repository.  If problems still persist, please make note of it in this bug report.
 If you want to test the update, you can install it with 
 su -c 'yum --enablerepo=updates-testing update pychess'.  You can provide feedback for this update here: http://admin.fedoraproject.org/updates/F7/FEDORA-2008-2613

After updating ('sudo yum update'), I tried to install pychess ('sudo yum
--enablerepo=updates-testing install pychess').  The result is

Loading "protect-packages" plugin
Loading "priorities" plugin
1747 packages excluded due to repository priority protections
Setting up Install Process
Parsing package install arguments
Resolving Dependencies
--> Running transaction check
---> Package pychess.noarch 0:0.8-0.1.beta2.fc7 set to be updated
--> Processing Dependency: pygtksourceview for package: pychess
--> Processing Dependency: python-sqlite2 for package: pychess
--> Running transaction check
---> Package python-sqlite2.i386 1:2.3.3-1.fc7 set to be updated
---> Package pychess.noarch 0:0.8-0.1.beta2.fc7 set to be updated
--> Processing Dependency: pygtksourceview for package: pychess
--> Finished Dependency Resolution
Error: Missing Dependency: pygtksourceview is needed by package pychess

Sorry. I had to add '--noplugins' to my update command line. Now it works.

pychess-0.8-2.fc7 has been pushed to the Fedora 7 stable repository.  If problems still persist, please make note of it in this bug report.