Cold fusion is a very difficult topic to discuss. The historical background has tainted it to a degree that makes it almost impossible to really figure out a scientific concensus of the current details, since you can't get good funding to try to verify/disprove current findings and most are willing to just avoid it all and complacently toss it all.
That being said, there IS a type of cold fusion that has very good scientific concensus since the 1950's. It is an interesting topic that is worth reading a bit about if you haven't heard about it before:
http://en.wikipedia.org/wiki/Muon-catalysed_fusion
It has been understood since the beginning though that this could not be used to generate energy from the fusion (the muon doesn't survive long enough).
What is controversial is the "Pons-Fleishman effect" which is an apparrent excess
heat in certain electrochemical cells. I decided once that I'd try to read up and figure out exactly what the current scientific consensus is. It is a mess. Many groups seem to be able to get excess heat (including a study by NASA), but except for small groups, scientists don't believe this is a fusion reaction. Others counter that the energy is too much for just a chemical reaction. The majority complain about lack of a reasonable mechanism to even cause fusion. The people studying complain that critics don't give a reasonable mechanism for the excess heat. And round it seems to go.
I find the whole thing very frustrating. I wish we could erase the history of this, so we could have a bunch of reputable people trying to carefully study and explain the cause (or mismeasurement) of the excess heat.
Consider for instance the situation of "super solids" in condensed matter. There is something interesting there, even though many opennly admit there may be no such thing. But it is still worth studying, and we learn more as we try to figure out the causes of the measurements ... even if it is not what we hoped it to be. If there was a similar scandal with "super solids", no one would touch it. It is a shame that a publicity scandal ruined it for "excess heat".
The study that really made me scratch my head was an experiment that used a Pd tube and measured heat when pressurizing hydrogen or deuterium in it while doing some reaction, and also doing a similar test with another metal. The effect was only seen with Pd and deuterium. I'm trying to find the paper again, and I'll post a link if I can.
In the end, I came to the (unfortunate) conclusion that the history behind this prevents easy separation of the "good" from the "bad" science ... and I'll just take the complacent, skeptic, and mainstream view and ignore all of this until someone comes up with dramatic irrefutable proof. Until then, it is just too "noisy" to really try to follow for my taste. (Although, if someone has a really good review article on the current state from a reputable source, I wouldn't mind reading that.)