What is going on now with the government shut down?

Most government offices and functions will close. Services from federal courts to federal parks to passport processing will close. Employees will essentially be put on furlough and not paid until services reopen.

However, government shut down was avoided last night. (April 8, 2011.)
It means that all gov run buildings will close, such as the Smithsonian in D.C, and basically, no one in the government is getting paid