The TSA is still enforcing the 3-1-1 rule.

3 oz or smaller bottles in
1 quart clear plastic bag
1 bag per person

http://www.tsa.gov/311/

They still make you toss your water bottles.

A man behind us got busted - he had a metal flask (empty!) in his carry-on, the guy on x-ray caught him - we didn't wait to see what happened.

Still enforced. At some airports you don't need to take the quart baggie out of your carry on and in some you do. But 3-1-1 is still the rule.

It is still the rule. DH has found once he forgot to take it out of his bag - no problem. And I have been less vigilant in checking for contraband like lip gloss in my purse.

However, in past 3 months I have been busted for a water bottle (full - I just forgot it was there) and 4 ounce bottle of sunblock - I made a mistake and though rule was 4 ounces -- even though it says 3-1-1 everywhere.

Leaving LAX in April I did not have to take my plastic bag of goodies out....but then just leaving SeaTac yesterday I did!!

Yes it is still in effect. How strictly it is enforced varies, in my recent experience. But to be safe I would still go with only the one 1-quart baggie with nothing over 3oz. in size inside.

I've used some pretty darn large tote bags as my 'personal item' and never had that questioned.

It all depends on where you are going through screening.I have had TSA want the full baggie out on its side CLOSED in their bins to security at Heathrow in London only letting me take one mascara and one lipstick in my baggie (and I am a crew member?) Alot of the screenings will not allow any other "holder" than a ziplock baggie so don't waste your money on those special clear plastic security bags.
I was in London last week and my flying buddy got busted for not having her sealed throwaway contacts in the special ziploc baggie and they were thrown away despite her protests-again an airline crew member.Its always something these days...
TSA in the states and overseas screeners will definitely let you take empty flasks or empty water bottles through but they have to be totally drained which alot of people fail to do.
If you have prescription medicines like cough syrups or childrens liquid syrups that have an actual pharmacy seal on them you can use an additional baggie to put those in for the screeners and its allowed.