Vim 7.4 was released yesterday, and as it's not in any repos yet and there's no PPA available, our only option is to install it from source.
First, we make sure that all of our dependencies are available
sudo apt-get install mercurial build-essential ncurses-dev
Then, we clone the latest source
hg clone https://vim.googlecode.com/hg/ vim
And we build it with all of the features we can
./configure --with-features=huge --enable-pythoninterp --enable-rubyinterp
sudo make install
It'll be installed into
/usr/local/bin/vim. You can check the version using:
Add it to your path with:
Then just type
vim to start using it.