Well looks like my post yesterday may have been a bit off.
A project running on the blue gene super computers has (supposedly) modeled the action of the neo-cortex from molecular level up. The neocortex is the area of the brain that houses most higher-functions (my neuro-scientist friend would kill me for that simplification).
While it is unclear quite how accurate this model is or quite how it works the researches claim that upscaling it to full brains is only a matter of money. Sentient space lobsters here we come!
In all it looks like research to watch (main site is here) certainly if they get funding we may see some interesting results soon.