Over the last year, Vidient reports that it has been focusing on reducing false alerts and enabling simplified deployments (new version 4.0 will be publicly announced soon). As evidence of their improvements, they cite a 300 camera deployment for the St. Louis (US) metro transit service. At this deployment, they claim 97% accuracy with only 1 false alert per camera every 3 days. They mention an article in GSN magazine. I have asked GSN for a link to an on-line version and will share when I get it.
Vidient reports a new financing round (in the last few months). They project that this round is good until at least 2010 when they expect to be cash flow positive.
Vidient's analytics are still server based (no smart cameras, TI Da Vinci port etc). Their rationale for this is that smart cameras do not provide sufficient computing resources to implement filters and enhancements to meet performance needs.
Finally, Vidient reports adding a feature that allows users to flag false alerts in production systems, enabling the analytics to adapt to specific on-site conditions. Vidient says that this is in addition to algorithmic improvements.
[Update 2010: Vidient went out of business.]