  Muon spin rotation measurements of the magnetic field distribution in the
vortex state of the oxygen deficient high-Tc superconductor YBa{2}Cu{3}O{6.60}
reveal a vortex-lattice melting transition at much lower temperature than that
in the fully oxygenated material. The transition is best described by a model
in which adjacent layers of ``pancake'' vortices decouple in the liquid phase.
Evidence is also found for a pinning-induced crossover from a solid 3D to
quasi-2D vortex lattice, similar to that observed in the highly anisotropic
superconductor Bi{2+x}Sr{2-x}CaCu{2}O{8+y}.
