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I have just about zero medical knowledge, so I can't make a judgment on it.

Just am hoping that their claims are true--would be great indeed to stop the debate for using embryonic stem cells.

I'm just curious--why would any doctor lie about this and ruin their reputation? I guess it happens, but why would anyone do it? Any false claims would be exposed pretty quickly, and their professional career would be ruined.

Wishing something is true, doesn't make it true. When they state they have a 100% cure rate w/o scar tissue it raises a red flag.

I would not be surprised to someday see successful stem cell research outside of the US, but we need to see the documented research not a news report of it.

Having been in Russian hospitals I can tell you the level of medical and technical sophistication is well below those of the US.

"I'm just curious--why would any doctor lie about this and ruin their reputation? I guess it happens, but why would anyone do it?"

I can't answer your question. However, I can tell you I've had Russian Doctors tell me they believe German Doctors have found the cure for cancer.

Perhaps the answer lies in the fact their government has, until the last few years, completely shielded them from scientific advancments outside the USSR. They are now seeing impressive medical research outside their country and feel a need to contribute.

FWIW, the Russians have always been big on miracle research, particularly if it is inexpensive (they couldn't afford any other kind, perhaps).
However, my best understanding is that Adult stem cells do have a limited functionality - that is, they do work within certain parameters, given that they are somewhat formed already and so have a limited range of further development available to them.
Baby stem cells, because they have not begun to divide and specialize yet, have potential for becoming anything. Of course, the key word here is potential. There has not been any real success yet, and may never be. One problem with getting embryonic stem cells to start growing, for instance, is that a cell that keeps replicating itself the essential ingredient of cancer, which is not a desirable outcome.
In my opinion, people hype stem cell research in their desire to have some sort of ultimate panacea. We can not accept death, or pain and suffering, and will do anything to try to hold on to the hope that we can be gods, rather than surrender.