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"Our intention is not to create cloned human beings but rather to make lifesaving therapies for a wide range of human disease conditions, including diabetes, strokes, cancer, Aids, and neurodegenerative disorders such as Parkinson's and Alzheimer's disease."

The researchers claim that they 'don't intend' to create human clones. As far as I can tell, this is exactly what they've done. They've figured out how to make a human, though they do intend to destroy the embryo before it begins to resemble an adult human. The technology being discussed here is far more morally ambiguous than the researchers are willing to admit, and this article doesn't challenge them on it at all. We are now technologically one step closer to creating humans as part of an industrial process.

More information: BBC News Stem Cell Q&A

Vatican funding research into ethical alternatives

President Bush's comments on stem cell research

Update: The Salon story has more details