Fourth Rail: Iraqi Security Forces Order of Battle discusses the current status of the Iraqi army. The map shows the status of the status of the Iraqi provinces. White areas are still under U.S./coallition control. Light green provinces have Iraqi forces in the lead, and dark green are provinces that have been fully turned over to the Iraqis. The big gray area to the left (west) is Anbar province, and it is moving a lot faster than anyone expected, even a couple of months ago.
Some of the commenters questioned the accuracy of the Iraqi army figures. The U.S. does appear to be doing some verification as to actual troop levels, etc.
Finally, it looks like the Iraqi army intends to grow by 50,000 troops a year for the forseeable future. Many of those will go to replace our troops, as we hopefully start pulling them out.