Cellular Alchemy
In theory, given that every cell contains all our DNA and the necessary mechanisms for replication, it should be possible to generate any type of cell from any other type of cell using little more than the biotechnology of today. We just don't yet know how. Here, the Telegraph looks at small steps forward in manipulating cell state: "a new front has opened up in regenerative medicine: the direct conversion of one cell type, say a skin cell, into another, say a brain cell. ... pioneering work [showed] it is possible, turning white blood cells into red cells, but now a new [study] 'is a timely reminder' that this method is worth more study to find out the best way to create new cells and tissues for repair. ... [researchers] took specialist 'pancreatic exocrine cells' that secrete digestive enzymes, which make up to 95 per cent of the pancreas, and converted them directly into another cell type, called beta cells, which make the hormone insulin to control blood sugar levels. ... it adds to the existing evidence that a cell's destiny is no longer fixed." If you can generate all the cells you need from any cells you have to hand, that will go a long way to speeding advances in tissue engineering and regenerative medicine.
Link: http://www.telegraph.co.uk/earth/main.jhtml?xml=/earth/2008/06/18/scistem118.xml