Check out http://blog.buyhandmade.org/ and this page at Etsy for recent updates on this Act.
I think this article articulates the difficulties much better than I tried to yesterday. I love this summary at the end of the article: If the goal is to really protect children, then Gold believes the CPSIA will need to be rewritten. "The law focuses on lowering the amount of lead and phthalates, not eliminating them," said Gold. "I want to produce products that don't have any of those harmful substances, and I'm being put out of business," concluded Gold.