From the official Linden Blog

SL Grid still closed to logins.

Friday, December 29th, 2006 at 5:16 AM PST by micklinden

Hi folks, discussions with our hardware vendors continue, and we’ll keep you updated as often as possible. Thanks for your continued patience whilst we work on resolving this issue.

Grid still down

Friday, December 29th, 2006 at 1:52 AM PST by James Linden[02:00am PST] Second Life is still down while we work with our storage hardware vendor. No estimated opening time yet, but it could be many hours. Get some sleep, go for a walk, give your First Life a chance!

[01:50am PST] Second Life is still down while we update our central storage hardware. No estimated opening time yet. Now might be a good time to sleep, if your time zone permits