A--Plasma Wiffleball - Federal Business Opportunities
The Navy appears to be saying "We liked what we saw and want further testing" on the existing WB7 platform. So they aren't building WB8 yet (whether that be a fullsize net-power or just something larger/different than WB7) but more testing is good. Dr. Nebel hasn't said anything about it on talk-polywell.org that I've seen, but I'll keep an eye out.
ETA: for those not in the know (yes, I'm looking at you McNutcase) here's an hour and a half long google talk by Dr. Bussard explaining his reactor:
http://video.google.com/videoplay?docid=1996321846673788606 and here's the wikipedia entry for the
polywell fusion reactor