Details are sketchy, but I quite accidentally came across some news of LOLCODE being implemented in Microsoft's DLR, as reported by Martin Foord. The Dynamic Language Runtime implementation apparently was done quite quickly by IronPython wizard Martin Maly, and demonstrated at TechEd Europe 2007.
The highlight of the talk was Martin showing off his lolcode implementation. The whole thing took him only 14 hours (whilst travelling) and is a pretty complete lolcode implementation built using the DLR. One advantage of implementing a language on the DLR is the Visual Studio support, so he showed setting breakpoints in lolcode and stepping through it. Unfortunately he needs Redmond's permission before he can release it, but he says that will probably come soon…
I'm tickled at this news. I also notice that this development was presaged months ago by LOLCODE prophet Nick Hodge.