My contractor's electrician mentioned that he thinks SER cable is no
longer allowed (or possibly no longer allowed to be run exposed) in
interior residential applications under the 2008 NEC for, e.g., feeding
sub-panels. Anybody know about this? If it is true there is going to
be a lot of painful conduit work to get to the planned sub-panel locations
in my new (very old) house...



*As far as I know it is still permitted. However the ampacity rating is not
the same for interior circuits as it is for an electrical service. He would
have to size the cable according to table 310.15(B)(16) in the 2011 code
book and not by table 310.15(B)(7).

A call to your local electrical inspector should clarify things.