I came across a link to Moller Skycars through one of my feeds. This got me looking a bit more into where we have reached with the concept of flying cars. The Moller Skycar (on wikipedia) has apparently been around for quite some time, and has also been tested out (but tethered runs for safety). The M400 model which is being planned for general usage is basically a 4-seater VTOL (Vertical Take-off and Landing) vehicle capable of speeds of upto 375 mph, and runs on ethanol. It’s expected to be priced around $1 million.
There are also a few videos on the Moller site on the flying cars, plus one on youtube of the cars test run (or flight). There’s also quite a bit of information on the wikipedia page on flying cars (with one of the earliest models dating back to 1937). Going by the information I’ve seen, the flying car can be expected to be launched by the end of this decade.
However, one of the big questions remaining is the one regarding the energy source for these vehicles – some form of petroleum/ethanol, which is not exactly environment friendly. This is also one of the main sections in the future of cars page on wikipedia, with alternatives ranging from hybrids to hydrogen powered vehicles.