Actually, Harvard University opened a department to do this recently. Made big news, with the NYT claiming that it shows the "failure" of Bush's policy on stem cell research. To me, it shows the success. This research should be done by private interests, not the government. Interestingly, before Harvard announced this, the NYT claimed that Bush's policy was a failure, and as proof, cited the fact that private interests had not come forward to fund this research. No matter what happens, the NYT says it's a failure.
I didn't know that, thanks. That's how it should be done! Maybe they can find something promising using adult stem cells.