Robot SmartBird Flaps and Flies Like the Real Thing [video]
wired.com
wired.com
That said, it looks like this bird can't really fly very well. It doesn't stop flapping its wings to glide, and it looks like it can't control its angle of ascent very well.
However, I'm sure it'll look and fly exactly like a real bird (even flocking, perhaps) within a few years.
Not that I'm underestimating the difficulty of bird-control software (especially in wind), but I think the most difficult part of this invention is the physical mechanism and getting it to fly at all.