just a boat in the way
Falcon 1 looks like it will be ok to launch after all. It's still 26 minutes or so into the unplanned hold, but it turns out the cause was just the recovery ship, part of the launch support team, being in the wrong area for launch. It is being moved, and launch should be back on track.
This will be the first of what SpaceX plans to be a whole family of low-cost, mostly reusable launch vehicles. All will use the same rocket engine as this Falcon 1, in different configurations (either 5 or 9 of them), so this test is an important validation of the whole concept.