Basically in the hearing both parties referred to a famous P2P case of Napster -- copyright owners' lawyers stating that FastTrack operators are identical to that of Napster and "FastTrack companies" arguing that because they don't operate any central servers (unlike Napster did), the Napster ruling doesn't apply to them.
Judge basically stated after the hearing that he is not ready to issue summary judgments at this point and needed more time to determine if the case should go to trial or not. Also, he probably needs time to determine whether or not the Sharman Networks should be included to the case.
More info:
Houston Chronicle
Yahoo!
(please note, most of the external articles confuse Grokster and Kazaa happily in their articles, so ignore those parts -- at least we've got the facts correct ;-)