The problem we've been having with the bundling of XML::SAX::Base with XML::SAX has been solved. What we discovered, is that because XML::SAX::Base is dynamically generated in XML::SAX's Makefile.PL, it doesn't show up on CPAN. So all we need to do is ship a pre-generated version with the XML::SAX::Base distribution so that it does show up, and generate the version that ships with XML::SAX. This is done via an almost trivial hack using two different MANIFEST files.
Simple, effective, and it keeps Kip happy