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.