Cool thread..... nice to see what everyone is up to. Due to the commitment of my job (military), I won't be able to matriculate until Fall 2010, but nobody was paranoid enough to start the Fall 2010 applicants thread, so I will join yours instead. Really, it is great to read the insights and opinions here, something that is immensely helpful to me.
1) What schools are on your list right now? Harvard, Stanford, Wharton, Columbia and via Consortium, Tuck, Darden and Texas (Texas is free for military veterans from that state - a great fallback!)
2) What is the state of your current preparations? Minimal - occasional GMAT prep, but I really don't plan on taking the test for about a year. I will probably take Manhattan online prep in a few months. I live in a foreign country now, so traditional ECs are a bit harder to come by. Aside from that, I have almost 2 years until Apps are due - just trying to do the best in my job and plan accordingly. Some people are afraid of losing their job in a recession - I have quite the opposite problem, I can't leave my job!
3) What's the scariest part of the process at this point? I honestly don't find anything "scary", but it is easy to say that when you look at it two years out. I worry the most about getting adequate time to prepare for the GMAT - my GPA is slightly below the average for these schools, although it is deflated being from a Service Academy. I have a 4.0 Masters degree, but I understand how important the GMAT will be to get over the bar, and I can forsee difficulty finding the time to study. I am a fighter pilot by trade, and we are somewhat busy with that Iraq thing.....
Also, age is a question. I will be 32 when I matriculate. I have heard from a million people (including people I know in these schools) that your age is not important when applying from the military pool, but still, it is a factor. It will only get worse with military pilots - I owed 8 years of service after getting "winged", the post 9/11 group owes 10. Still, there is nothing I can do about that, so I don't worry about it.
4) How serious is your pursuit at this point? 100%. I have decided to leave the military after this tour (the soonest I legally can), and have also decided to pursue an MBA. I loved being a military pilot, still do, and I feel like I get paid to have fun.... but I always felt my service was a duty, and not a career. When I was younger, I had mixed thoughts between law and business school... I am glad I have now seen the light like you guys (I have had too many drinks with depressed lawyers).
Anyways, good luck to everyone, and I will probably post again in a year or two.