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I heard the news and an article is published in Science, but what exactly is the major breakthrough? To me it seems that they have improved on their technique of nuclear transfer (cloning) for extracting stem cells, not that they have created a new way of creating stem cells (the news seems to have picked up the topic big time).
http://sciencenow.sciencemag.org/cgi/content/full/2005/519/1
http://sciencenow.sciencemag.org/cgi/content/full/2005/519/1