Thanks, Bob. For everyone else, here's the link to Bob's post about the new Reservation.gov system:
http://www.whitneyzone.com/wz/ubbthreads.php/topics/20519/Revised_Inyo_Forest_Permit_Sys#Post20519

The new system doesn't seem to change the timing on getting a permit, so this won't help someone trying to coordinate a campsite at the Portal. But it does make the paperwork easier. Personally, I'll never use the lottery again. I've had good luck just calling a few days ahead to pick up a cancellation. Just need to be flexible. The lottery seems like a better strategy for a group where you need a firm plan.

Here's a cut from the latest info from Inyo, which is in a Word document at:
http://www.fs.usda.gov/Internet/FSE_DOCUMENTS/stelprdb5342664.docx

The Web page for 2012 Mt. Whitney Permits can be previewed. Online applications will be accepted starting February 1, 2012.
Permits for Mt. Whitney are reserved by a lottery due to the high demand for reservations. All the applications will be included in a computerized lottery. Applications are made online for the dates and group size you would like. You can list up to 10 alternate choices. For each choice, indicate if it's a day hike or overnight permit. Dates in July, August and September usually fill completely from the lottery.
•   Applications will be accepted online from February 1 through March 15.
•   After March 15 lottery applications will not be accepted.
•   All lottery applications that are submitted online from February 1 through March 15 will be processed in a computerized random drawing.
•   Results will be sent by email before April 1.
•   Permit reservations cannot be changed, transferred or resold. Only the leader or alternate leader can use the permit. There are no refunds.
•   Starting April 1 the remaining space will be made available for reservations on a first-come, first-served basis either online or through the Recreation.gov call center.
•   Reservations can be made until two days before a trip entry date if space is available.
•   Space is not saved for walk-in permits for Mt. Whitney. There is no wait list for cancellations. Cancellations will go back on the calendar within 24 hours.