ICANN is now reporting: "The ICANN Board considered the [.XXX] agreement at its meeting on 10 May 2006 and voted not to approve the agreement as proposed, but did not reject the application. The applicant has continued to work to modify the agreement in order to address public policy issues raised by the GAC. ICM and ICANN Staff have been renegotiating a revised agreement in preparation for community review and board consideration. ICANN will post that agreement upon completion of the present round of discussions for public comment."

This is big news.