Actually, the California case started back to 2002. Daniel Pipes commented about it then in his article
'Become a Muslim warrior'.
The recent California 9th Circuit court ruling allowing this to continue occured this past November:
Court clears school of pushing religion with lesson on Islam.
And the beat goes on:
Asalam aleikum Seattle!
EDIT: An older article on the California case, expanding the issue in general and in detail and containing many links, can be found here:
Look who's teaching Johnny about Islam - Saudi-funded Islamic activists have final say in shaping public-school lessons on religions. It's written by Paul Sperry, author of the book
Infiltration : How Muslim Spies and Subversives Have Penetrated Washington.