Nothing to see here, the examnier hasn't even looked at it yet. Here's the transaction history:
04-01-2007 Case Docketed to Examiner in GAU
03-08-2007 PG-Pub Issue Notification
10-04-2006 IFW TSS Processing by Tech Center Complete
10-03-2006 Application Return from OIPE
10-03-2006 Application Return TO OIPE
10-03-2006 Application Dispatched from OIPE
10-03-2006 Application Is Now Complete
09-21-2006 Cleared by OIPE CSR
09-19-2006 IFW Scan & PACR Auto Security Review
09-05-2006 Initial Exam Team nn
This application Claims Priority from Provisional Application 60/714,285 filed 09-06-2005
If you have documented prior art, alert the USPTO. An even nastier way to deal with it is to alert Morfik and/or the law firm that filed the application. They are then legally required to notify the USPTO. If they don't notify the USPTO, then there is a very good case that a court would invalidate the patent for failure to disclose relevent prior art. It can work even if the prior art isn't sufficient for rejecting the application.
Here's the address of the firm that filed the app:
William C. Milks, III;RUSSO & HALE LLP
401 Florence Street
Palo Alto, CA 94301