Did they change the rules to allow Romex in NYC?

I hope so Greg, it's about time the NEC and all States catch up with Michigan.

Depends, see page 51 of the ammendments to the 2002 code for NYC. http://www.nyc.gov/html/dob/pdf/sec4a_ll_81_2003.pdf

So it looks like "yes it is legal" but you can't really use it anywhere.
I guess if someone wants to tear down an apartment building and build a little rancher, they can use Romex in it.

gfretwell,
For the most part you got the jist of it.
I also understand that most EC's still use AC cable in residential anyway, because the inspectors have not gotten used to the idea of inspecting NM yet. Some inspectors in NYC will skip a portion of the rough install inspection if it is done in AC cable.

Don't forget NYC has 5 Boro's. Manhattan is what most people think of when NYC is mentioned. The other Boro's have millions of people with plenty of single and one&two family dwellings. Here they are now permitted to use NM cable.
The funny part is most of the electricians in these areas cannot even think of NM cable. It is kind of funny.
I did see some house in Brooklyn last weekend that were being wired with NM cable though - so some are using it.