For those that are looking for direct info (as opposed to the Slashdot discussion), the link to the story on Kazaa ignoring the court order is
here. And
here's the original article about the court order. (They were allegedly to be fined $40,000/day if they didn't shut down.)
But those stories are from 2001, aren't they? I think what happened today is fairly significant if they are just not allowing the infringing devices from being downloaded because they claim they can't control the network.