Here's the oral argument before the Seventh Circuit, 12/02/10.
The question the panel is being asked to decide is whether Congress may direct the president to declare a National Day of Prayer without violating the First Amendment's Establishment of Religion Clause.
Some background and observations:
Two things Judge Barbara Crabb never said
Impeach Barbara Crabb [feat. the "hate group," FRC]
Western District of Wisconsin letter of the day
New law in Wisconsin today
Alternatively, the Seventh Circuit panel may choose instead to determine that the FFRF had no legal standing to sue Obama in the first place, in which case the circuit court can reverse the Wisconsin district court without ever reaching the above Establishment Clause question (some people would refer to the latter as "punting").
The oral argument does not provide much insight into which direction the court is inclined to adopt, but I think it's reasonably safe to say that at least two of the three judges do not seem particularly receptive to the FFRF's substantive First Amendment concerns.