Via Hacked Off: "Almost exactly 24 hours after the trial was due to begin The Sun has reached a settlement agreement with Lord Watson and Prince Harry to avoid trial over allegations of phone hacking, illegal activity and a cover up at The Sun and The News of the World. "As part of the agreement, and after many years of denial, The Sun has finally admitted that The Sun was indeed engaged in unlawful activity." That last point is a very big deal indeed. They've always denied it.