Sap,

Just found this http://www.globalsecurity.org/military/systems/ground/m29-oicw.htm

Quote
Following the increase of the caliber of OICW grenade launcher component from 20mm to 25mm [the same as used in the OCSW], in July 2004 it was decided to split the OICW system into two separate weapons, the 5.56mm XM8 modular assault rifle (OICW Increment 1), and the 25mm XM25 airburst assault weapon / grenade launcher (OICW Increment 2). Development of the complete XM29 (OICW Increment 3) system was shelved, and will be resumed once the OICW Increment 1 and 2 components are developed, and weight constraints of entire system are met.


It�s hard for a guy like me to keep this stuff straight. Looks like once they have the two individual weapons worked out, they�ll try to marry them together. This goes along with what I remember about seeing congress authorizing further funding, and IIRC, it was funding to further develop the airburst warhead...Still a half baked idea if you ask me.