The latest news is that the crash of the Lunar Prospector into the south pole of the Moon failed to reveal the presence of water.  Several reasons are given for this, most leave room for the possiblity of eventually finding water ice at the Moon's poles.

The final act of the Lunar Prospector's mission to map the surface of the Moon was to use the last remaining bit of fuel to crash-land the craft into a permanently shadowed region of the Moon's south pole.  The hope was that the impact would have enough force to create a plume of dust and ice that would be detectable from instruments on Earth and in orbit.  The hoped-for plume was not observed.