http://www.smithsonianmag.com/issues/2006/may/dinosaur.php?page=1
Snippets:
"After 68 million years in the ground, a Tyrannosaurus rex found in Montana was dug up, its leg bone was broken in pieces, and fragments were dissolved in acid in Schweitzer’s laboratory at North Carolina State University in Raleigh. “Cool beans,” she says, looking at the image on the screen.
"It was big news indeed last year when Schweitzer announced she had discovered blood vessels and structures that looked like whole cells inside that T. rex bone—the first observation of its kind.
"Meanwhile, Schweitzer’s research has been hijacked by “young earth” creationists, who insist that dinosaur soft tissue couldn’t possibly survive millions of years. They claim her discoveries support their belief, based on their interpretation of Genesis, that the earth is only a few thousand years old.
"What she found instead was evidence of heme in the bones—additional support for the idea that they were red blood cells. Heme is a part of hemoglobin, the protein that carries oxygen in the blood and gives red blood cells their color. “It got me real curious as to exceptional preservation,” she says.
It turned out Bob had been misnamed. “It’s a girl and she’s pregnant,” Schweitzer recalls telling her lab technician when she looked at the fragments.
Of course, what everyone wants to know is whether DNA might be lurking in that tissue. Wittmeyer, from much experience with the press since the discovery, calls this “the awful question”—whether Schweitzer’s work is paving the road to a real-life version of science fiction’s Jurassic Park, ...ridiculously hard to study because it is so easily contaminated with modern biological material, such as microbes or skin cells, while buried or after being dug up. Instead, Schweitzer has been testing her dinosaur tissue samples for proteins, which are a bit hardier and more readily distinguished from contaminants. Specifically, she’s been looking for collagen, elastin and hemoglobin.
..."
Anyway, the point is dinosaurs are fucking awesome, they found soft tissue (which actually told us that the dinosaur was a girl and was preggers) and are on the way to being able to isolate proteins and eventually DNA.