New version is up and it contains following fixes.
Satellite assemblies is now supported for GAC and WebApplication. (Strong name your Resource.DLL when adding it to the GAC)
The -Retract argument now works again.
The -Createfolders argument have been changed and fixed.
A bug with inner exceptions looping fixed.
Build from \GAC and \80\bin fixed.
Get it here : http://www.codeplex.com/wspbuilder