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Prototype was just lost during the last test flight earlier today:

http://security.blogs.cnn.com/2011/08/11/new-york-to-la-in-l...

And this loss might cost them their program:

"This test flight was their last shot at success before the project is considered for closure."

http://www.guardian.co.uk/world/2011/aug/11/fastest-ever-pla...

That page concludes with:

"Had the latest test flight gone to plan, the Falcon HTV-2 would have separated from its rocket high above the atmosphere and entered a steep dive before levelling out and performing a series of subtle manoeuvres to test its aerodynamic performance. At the end of the flight the plane would have rolled upside down and steered a graceful arc into the ocean."

The official press release at http://go.usa.gov/KLe says that they confirmed separation and that they achieved high-speed aerodynamic flight, not that they "would have separated". They lost contact 9 minutes into the aerodynamic tests, and the plane (if you can call it that, the CNN article calls it a "triangular wedge of zoom" which seems more appropriate) went down sometime after that.

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