Progress in Iraq if you count increased terrorism as progress.

The N.Y Times reports:
In a troubling sign for the American-financed rebuilding program in Iraq, inspectors for a federal oversight agency have found that in a sampling of eight projects that the United States had declared successes, seven were no longer operating as designed because of plumbing and electrical failures, lack of proper maintenance, apparent looting and expensive equipment that lay idle.

I don't see any progress being made in Iraq towards a stabler government and an improved (or even repaired) infrastructure. The only progress is the gradual slide towards total chaos.

McClatchy Newspapers reports: A State Department report on terrorism due out next week will show a nearly 30 percent increase in terrorist attacks worldwide in 2006 to more than 14,000, almost all of the boost due to growing violence in Iraq and Afghanistan, U.S. officials said Friday. 45% of the attacks were in Iraq or Afghanistan.

I guess, if you consider deterioration of a nation and increased terrorism progress, the administration isn't lying. It is, after all, how you define it; we are making "progress" towards total mayhem in Iraq.