AFP reports that Brazil has given Google Brazil 15 days to turn over the data on the Orkut users they have been asking for. If Google Brazil does not comply, they will be fining them $23,000 per day. Google has said that they would work with Brazil to shut down Orkut some communities but according to the court filing in Sao Paulo yesterday, those requirements have been 'unsatisfactorily met.'
We have a good historical round down of this whole Google & Orkut & Brazil issue here. Business Week also has a nice write up on the issues named Google's Brazil Headache, highlighting why Google is saying they'll comply if only the requests were sent to Google in the US, rather than Google Brazil.