I found this article through BitcoinX the other day.
I was wondering what the incentive for a retailer would be to BUY one of these instead of getting paid to let someone put it in their store.

This is not the first bitcoin ATM but it is almost certainly better then the earlier ones.

The address you want is http://www.lamassubtc.com/

I used the machine and was suitably impressed.

Thanks, lassdas. I was in a hurry to post this and grabbed a link I was looking at in place of the correct one. ShireSilver gave the one I meant to put up.

If they intend to sell the bitcoin ATMs to businesses that accept bitcoin; won't it make a bit of a mockery of bitcoins.

Shop Owner: We accept bitcoins
Customer: Oh really?  Where do I get them?
Shop Owner: Over there at that machine
Customer: ...goes over, puts in cash, gets bitcoins on his phone, waits for confirmations, walks up cashier and transfers bitcoins, more waiting...
Shop Owner: ...then walks over and takes the cash out of ATM and send the bitcoins back to Lamassu...

*High five each other*..."Yay we used bitcoins"

Sounds like a monty python bit

I agree, for this purpose it doesn't seem to be very practical. I can imagine that this machine is great for money transfer companies though, who can either use it to wire money to other offices across the world, or can sell bitcoins in places where people would otherwise have trouble obtaining bitcoins.

Will the ATMs accept food stamps then?

Is there a status update on this project?

We're working hard on a production prototype and we're making good progress. As soon as I have something more concrete to show, I'll post here.

Here is a video of the Bitcoin Machine in use.
http://youtu.be/BE5CEX4vRck