Sikorsky's ABC Helo Flies

And earlier than expected, reports were that it wasn't to leave the ground until sometime in 2009.

In any case, it made a 30 minute test flight (also see here).

This was a fairly conservative flight, basic maneuvering with the tail propulsor shut down, as can be seen in the pics.

They plan to expand the envelope to a speed of 250kts, and then make a decision as to whether to manufacture helos with the technology.