According to http://www.groklaw.com (the best online source for tracking this suit) the latest public statements have been that the judge in charge of the case has set a date for trial, and no futher discovery motions from either side will be accepted. Beyond that, I can't say much for reasons that will probably be obvious. I am not a lawyer, etc, etc.
For what it's worth (see above), I would say that you should proceed with your implementation. Most of the major Linux vendors have already offered indemnification for any possible problems (HP, Novell, Red Hat and IBM all have), and even in the extremely remote case that SCO does win something out of this, the Linux community has already prepared workarounds for removing any potentially infringing code. There's no reason to delay implementation over this.
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