In February, 2010, President Obama announced the cancellation of Project Constellation. In October, 2010, Congress came up with a compromise - keep the Orion capsule but launch it on a commercial launcher. Ares I and V were cancelled. To provide a heavy lift capability, congress ordered NASA to build a rocket that specifically used Space Shuttle technology.
Nasa has defined two parts to the new system. The MPCV (multi purpose crew vehicle, formerly Orion) and the SLS (space launch system). The MPCV will launch a crew of 2-4 people into orbit in a partially reusable capsule on top of a Delta IV Heavy rocket. Current work on the SLS leans toward launching the Space Shuttle stack with the Orbiter replaced by an unmanned, non-reusable cargo container. Only the solid rocket boosters would be "re-usable".
NASA formally abandoned the development of the Ares I and Ares V rockets in October, 2010. Congress mandated that NASA develop a "Multi Purpose Crew Vehicle" to be launched on a private industry rocket, capable of travelling beyond low earth orbit to the moon or nearby asteroids. NASA is tentatively planning to develop the MPCV from the Orion capsule.
Lockheed Martin (who graciously provided these pictures & video) has a Space Operations Simulation Center in Denver, Colorado. The first Orion spacecraft, which is a ground test article and manufacturing pathfinder, was transported from New Orleans in March, 2011 to begin testing in simulated space like conditions, including navigating to and docking with the International Space Station. Read Lockheed Martin's press release for more details.
The second complete Orion Spacecraft will be flown unmanned on top of a Delta IV Heavy rocket in 2013. The mission involves placing the capsule in a 17,000 mile high orbit and then accelerating it to re-entry speeds that are encountered when returning from the moon. Originally Orion was going to travel to the International Space Station on its maiden flight, but this ferrying task will be assumed by private industry, most likely the SpaceX Falcon 9 and the Dragon capsule. Orion will be designed for manned, deep space missions. As of February, 2011, work has not yet begun on this spacecraft.
With the cancellation of the Ares I rocket, the Delta IV Heavy might be used to launch MPCV capsules. An "off the shelf" Delta IV can be used to launch the unmanned MPCV mission, but it will have to be "man rated" to launch future missions, which costs big money.
The 2013 mission will do more than simply orbit the MPCV spacecraft - it will launch it into a highly elliptical orbit 17,000 miles high, and then use its service module rocket to accelerate it above 23,000 mph for reentry to simulate expected speeds when returning from lunar orbit.
In August,
1987, NASA commissioned a design study for cargo-variant of the Space Shuttle. Called
Shuttle C, the design replaced the reusable orbiter with an empty cargo cylinder that
could lift 103,000 lb load (15 feet in diameter by 72 feet long) into a 250 mile orbit.
Ironically, the Soviet Union actually used this configuration for the first flight of their
Energia Space Shuttle stack. In May, 1987 the 180,000 lb Polyus Weapons Platform was launched
into orbit. Unfortunately, after separation, Polyus oriented itself in the wrong direction and
fired its rockets so that it promptly burned up in the atmosphere. The Energia stack only
flew one
more time, to launch the Buran Space Shuttle. The Buran landed successfully, but suffered severe heat damage
which was beyond economic repair.
After the cancellation of the Ares V rocket, the "Shuttle-C" concept was reprised as the
Shuttle Heavy Lift and is the leading concept to fulfill the congressional mandate to
fly a heavy lift rocket by 2016.
In February, 2011 it was revealed that NASA is unable to construct this rocket because congress didn't appropriate enough money. (Congress mandated, in 2010, that the heavy lift rocket should cost $8 billion and must fly by 2016).