Grasshopper

SpaceX is working on a rocket it calls Grasshopper that will both launch and land vertically.  The landing part would seem to be a real challenge, but, so far, there have been two successful test "hops."  Each lifted the rocket only a few feet off the ground before setting it right back down, but it's a start.

The company's goal is to develop a completely reusable rocket/spacecraft stack.  The people at SpaceX are convinced that is the way to dramatically lower the cost of reaching orbit.  They may well be right.