A few days ago, Space X successfully launched a Falcon 1 rocket, boosting a dummy payload into Low Earth Orbit. Congratulations to the Space X team!
This was the fourth attempt. The first three ended in explosions with loss of vehicle and actual payloads. Space X has been learning that spaceflight is neither easy nor inexpensive. If Elon Musk is willing to continue to spend a lot of money, I am sure he will have more successes in the future with follow on rockets. But, he should expect more problems and more expenses.
This raises into question on how much cheaper he might be able to offer launch services. He also needs to build up a record of demonstrated reliability.
I wish Space X luck. We need more launchers out there to drive down costs!