The schedule is just hugely compressed - they are talking IOC in a little over two years and they have accomplished just about squat for test points so far. There are dynamic issues with the tail rotor (block I's, read about Cananda's problems with them) and they've barely even tried integrating anything. The issues of traveling with it, breaking it down, support requirements, etc are another problem.
My guess is they will make a show of flying Hilary around once in whatever they have that is painted right and you will still be seeing plenty of the H-3 in late 09. Look at Bantle's quote around the middle of the article: "and positions the team to deliver production aircraft capable of flying the President in October 2009".
(No, I am not going to vote for Hilary. But I just really enjoy teasing the HMX-1 guys about that...)