FYI:
Here's an article for all you theorists...
"Scientists suggest spacetime has no time dimension"
http://www.physorg.com/news/2011-04-scientists-spacetime-dimension.html
-Mark
No problem ... progressing from one state to another is pretty much what Loop Quantum Gravity does.
We already have a whole bunch of 'emergent' properties (heat ... and possibly gravity), so having time as 'emergent' isn't SUCH a big deal.
Unfortunately it probably does away with one of my 'favorite' cosmologies, where we are twisting in a 4D+ space-time, so that individual dimensions can change from space-like to time-like.
