RLV News has all the links you need to check out the videos, messages, and descriptions of Armadillo's test flights that show they can win the level 1 version of the Lunar Lander Challenge event. Now they just have to make sure they can reproduce the feat reliably, just like they would have to in a real lunar lander. Check out all the links because it's quite impressive and interesting. When you get to John's notes on the tests, follow up on the pictures, too - among other things you'll see pictures of the modular vehicle being made.
Personal Spaceflight also has a good post on the tests. Follow the "Armadillo Aerospace" category link to see more information about the modular vehicles. Also, here's an earler post from New Scientist magazine.