They are doing okay. They still live in the apartment suite in a hotel. I'm not sure when their house will be ready.
Sis is getting along better at church. She has fallen so far from grace that they now treat her gently, demanding little and giving her lots of leeway. Their dog barks when he is left alone in the hotel so the church is letting Niece2 bring him with her to school. Sis says that a year ago they would have insisted that they find other arrangements. Now she seems to be able to get away with anything.
Nephew still has had no contact with juvenile justice. Sis is beginning to suspect that he might not. This is disappointing because she really wanted it to be impressed upon him that though this time he is getting sympathy and therapy, if he sets more fires he will be in serious trouble.
The therapy is coming along slowly, which is to say it isn't really coming along at all. Every time I talk to her it looks like it will start soon. This time I learned that though the therapist had changed practices, she did get stuff done so that she could be paid. I didn't pay attention to the details.
BIL & Sis decided that his last leave with them was so stressful that he will skip his next one.
And the big new is.... the fire marshal from my sister's area knows another fire marshal who is serving in Iraq (presumably he was in the reserve) at the same base as my BIL. This guy has apparently been having some conversations with my BIL. BIL had thought it was important to get home as soon as he could because clearly his family was falling apart without him. The marshal in Iraq though suggested that maybe what his family needed was more time apart. After these conversations he is thinking about seeing if he can just stay in Iraq another year. He is hoping that he can rebuild trust with Nephew through email and phone calls.
I don't know how the rebuilding of trust will go, but Sis is thrilled to know that they have more time before needing to be a family again. If BIL does stay the extra year, Nephew will be a sophomore and the only kid at home when he gets back. She's hopeful.
So everything there is going as well as can be expected.