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Basically what I've gathered is:
Democrats agree to cut a certain amount.
Republicans want to cut more.
Democrats won't compromise.
Apparently there wasn't a 2010/2011 fiscal year budget.
Which all of this is going to make QE2 even more interesting when it concludes in a couple of months.
I'm sure something will be done hush hush, last night or in the middle of the weekend.
Its really simple. The government needs money to function. Since the people in the legislature can't agree on how much to spend the government will have no money. If it has no money it can't run.
Tons of questions and answers on that page. IMO it's not THAT big of a deal. I predict that they have everything resolved by Monday at the latest. It's just an attempt by both sides to prove that they have power.