AACS hasn't been cracked. All that has been shown is that it's going to be impossible to securely play back BD/HD-DVD sofware in an XP environment. If BD PC drives weren't so expensive, this would have already happened on BD as well. But it won't take long anyways.
Depends on your definition of cracked. I agree that it is cracked, because you can dump the AACS keys from memory using a very available program. There is also now available HD-DVD Backup V1.00 which supports volume keys and title keys. Also the 2 Hd-DVD titles now available for download should be proof enough.