QUOTE(PeteUS325 @ Feb 16 2007, 11:47 AM)

1) I was told that DCF has recently been terminated. Is this correct?
2) Is DCF good only when you (the petitioner) live in the same country as you fiancee (so that you can file the DCF at the US embassy of your fiancee's residency)?
I'm a US citizen currently working overseas and my fiancee lives in a different country (China)
If everything were as it had been, you would still not be eligible for direct filing. The residency rules in China have always been very strict (very high immigration numbers coming from China--one IV issuing post).
Since you are not a resident in China, youi would not be eligible to file there. Some countries did allow filing by non-resident USCs, but China was never one of them.
This is the time to research your other options.