I just got a note from a friend I met in Burma last Jan 2007, we split a taxi from Mandalay to Hispaw, trekked, partied and a hung out for New Years. He has been going to Burma for 8 years, and has just about covered the gambit. He was waiting in Mandalay at the Royal City GH for his permits to go north, and it took forever, 8 weeks....we took a side trip together as he wanted to get out of Mandalay, and according to his note, he took another one as his permits were taking even longer....he is Belgian and has funny names for everything.
Here is note-
WHERE were you;
I was looking for you all over Myanmar,after i lost
the pool game which you made me lose in the last round
its not fair I was better,so when next round and
where.See you in BEDJiNG for the olympics open? After
Sipo I went back to Mandeleley waiting for my permit
to the far north ,first it didn't show up, so I made
another side trip again Kentong near the Thai border
went to see some hill tribes,interesting and back to
Mandeley.Finally my Yangon friend sent me a message
all was clear and he would bring the permit himself,
luckily because when I went to book a plane ticket
they didn't allow me to go without guide!!!After I
paid 50us for the permit sh....... So my friend called
his wife explained the situation and finally we took
off together,first 34 hours by train and then by plane
from Myktina to Putao,near the Himalaya ,cold but so
pure I want to go back ,but different season,too much
mist.We had to wait longer for a flight back due to
the mist.But finally I got back in Yangon and left
after a 3 months stay .Of course after paying my
overstay 3us aday.
Coming home was less pleasant,my younger brother
became victim of throat cancer,he fought back,but not
with the same arms! C'est la vie. Only 48 years
young!!!! Next plan we have a ticket to BKK my wife
and another lady who has done 3 times Myanmar with
us.
With the current situation we are not sure whether we
can make it, so it is now still an open plan.
I hope all is well for you and that you have good
plans for yourself.
See you for the next pool game. Where ? Beijing?
We are off from 19 december - greetings - Herman

Interesting info on Putao, Solo. Thanks.
This is the "official line" on overstay.... I'm not sure about getting visa extencions at the moment though... Seems to be conflicting opinons as to the availability and this info may already be out dated:
Foreigner can stay in Myanmar during the period of validity in the visa. If he wants to overstay , he may apply for the extension of stay with the recommendation of the Ministries concerned. The fees for the stay-extension are as follows:-
From 1day to 3 months - 36 $
From 3 months to 1years - 90 $
(d) If the foreigner overstays , he has to pay the overstay fees as follows:-
From 1day to 90 days - 3 $ per day
From 90days and above - 5 $ per day
If I was with him in Jan, and he was on a 30n day tourist Visa, he stayed then until sometime in March...
Thats $3 per day, x 60.....$180 Ouch, at least there is no grief from the Junta, though its March, prior to protest in Sept. Another thing that may help him, he is Belgian, and has 7 prior Visa to Burma....
He speaks fluent Burmese, and truly is deeply in love with the culture. His wife runs some Galleries, and teaches art at the University.

Permits to Putao have always taken forever. Not only that, but when you get there they keep an eye on you like nowhere else.
I'm not going to get specific about my experiences there, as I like to retain some anonymity for myself and my traveling companions, but any visit to Putao by a foreigner will involve both military and civilian minders as well as a local field guide. Additionally, there are restrictions on where you are allowed to travel and even eat when you are there. Two months for a permit is par for the course. I have gotten 2 permits, and I got one in 6 weeks and the other in about 9 weeks. When you arrive in Putao military and civilian authorities will take turns questioning you. They may also require you to stay in military housing which is a tough thing to swallow.
In my opinion, overstaying a visa is not a good idea. Yep, a few bucks can get you out of most minor scrapes when you are there, but do you want to tempt fate? I think you can get an extension, anyway.
Its interesting reading that about Putao. Isnt it the gateway to the Myanmar himalayas, most people stop here to stock up on rice & medicines for their treks to Mt.Hkakaborazi ? Like you say, I guess you have to have a guide there, I cant imagine anyone just wandering off into the mountains without knowing the area!! Do people trek any furthur north than this, like Taphungdan, supposed to be the last habited place north of Putao ?

Didn't someone pay $40.000 or some astronomic figure for a permit to climb Mt.Hkakaborazi some years ago.
Also.. did you read about the (tragic) demise of Dr. Joseph Slowinski?
Remembering Joseph Slowinski
So happens they're doing tours there pretty frequent now. Well, I say frequent, between November & april so happens is the best, safest time to access the mountains. I think the prices I read ranged from a couple of thousand dollars upwards. I was quite into the idea until I read it was the 18th highest mountian in the world..lol..
I think I need a diet & a detox before I climb anything !!