In fact the research continues at full steam! They'll be able to kill you from orbit yet.
http://www.fas.org/spp/starwars/program/sbl.htm
The Senate Armed Services Committee ended its FY2001 authorizations by boosting spending on military space programs and technologies by $98.2 million, chairman Sen. John Warner's office announced.
http://www.spacedaily.com/news/laser-00f.html
Here's a site on the testing of the technology:
http://www.spacedaily.com/news/laser-00e.html
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