Naturally, the Discovery Institute is scrabbling to explain why transitional fossils don't exist, why evolutionists have never found a transitional fossil, why this isn't a transitional fossil, and why even if it is a transitional fossil it doesn't hurt creationism anyway. In the process, they are only showing how poor their understanding of biology really is. Don't take my word for it, read PZ's articles above. He does a very good job of ripping them a new one, especially in the second article.
Suffice to say, the science vs. intelligent design scoreboard has not changed.