An anonymous reader writes "It appears that the initial rumor of the SWORDS robots being pulled out of Iraq — and its subsequent correction — were just that: sensationalizing in the blogosphere. Popular Mechanics has a lengthy update to its original scoop, digging into the sketchy responses from defense contractors when pressed about the bot's actual duties in battle. From the article: 'Although others have used our story to generate a false online rumor about these armed UGVs, the nature of those "technical issues" that Gotvald mentioned in his statement, and that Qinetiq and Foster-Miller have yet to address directly, remains a mystery. Until someone can explain why SWORDS lost its funding, and what exactly it is — and isn't — being used for in Iraq, the rumors are likely to continue. If this is the dawn of the era of robotic infantry, things are off to a decidedly rocky start.""