Technically it is "Preliminarily Invalidated", that is, Apple can still try to convince the USPTO that it really and truly is a valid patent. But if they don't convince within the next 2 months (unless granted an extension), it will be "Final Invalidated".
The prior art cited is:
U.S. Patent No. 7,724,242 to Hillis, et al. ("Hillis").
U.S. Pub. No. 2005/0057524 to Hill et al. ("Hill").
Dean Harris Rubine, "The Automatic Recognition of Gestures," CMU-CS-91-202, December 1991 ("Rubine").
Japanese Pub. No. 2000-163031A to Nomura et al. ("Nomura").
International Pub. No. WO 03/081458 to Lira ("Lira").
U.S. Patent No. 6,677,965 to Ullmann et al. ("Ullman").
U.S. Patent No. 6,757,673 to Makus et al. ("Makus")
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Groklaw is a great place to get this kind of info.

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