Synthetic Life

I'm not sure if people have discussed this here but I was fascinated to read Craig Venter's news about creating the first ever replicating biological lifeform who's parent was a computer. The science is incredible but there is a major ethical dilemma. Is it right to create life from nothing - what does this tell us about religion and the sanctity of human existence.  Or, as a civilisation, must we pursue this line of research as part of our evolution in view of the huge potential it holds for medicine and our intellectual and philosophical understanding of life? 

Here is a video in which Venter describes his work:

http://wethinkfirst.blogspot.com/2010/07/synthetic-life.html