I am trying not to get too excited. I think that far too much is being read into a very cautiously worded report.
The progress reports now look like this:
2010-09-30
WB8 is fully under construction, progress made on Theoretical modeling of the Polywell.
2010-12-31
WB-8 device construction is completed. The first plasma was generated successfully on Nov. 1, 2010.
2011-04-31
As of 1Q/2011, the WB-8 device operates as designed and it is generating positive results. EMC2 is planning to conduct comprehensive experiments on WB-8 in the next 9-12 months based on the current contract funding schedule.
MSimon reports that they had procurement problems. (Possibly for sensor equipment? They generated plasma last year, so sensor equipment seems to be the only other thing they could require that would not interfere with generating a plasma but which would cause problems with the project.)
It looks to me as though the project is running behind schedule and that the last quarter has simply seen basic confirmation that a plasma (and possibly neutrons) can be achieved (i.e. "operates as designed") and probably some initial exploration of the parameters for running the system.
The plans for running "comprehensive experiments" sound as though they are intending to thoroughly explore the capabilities of the present system, but do not indicate the degree of the success so far.
I have seen nothing to indicate that scaling operates as theory suggested.