Brett Trout has posted more information about the school district laptop spying case. It appears that the district has agreed to settle the case for significant money.
Here is a link to Brett's report:

http://blawgit.com/2010/10/12/school-district-agrees-to-pay-600k-for-using-school-laptops-to-spy-on-students/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+BlawgIT%2FEdUt+%28BlawgIT%29