USCIS has issued a notice indicating that there are now sufficient cap-subject H-1Bs in the pipeline to fill the fiscal year 2006 quota--a fiscal year that does not even start until October 1, 2005. Petitions filed after August 10, 2005, will be rejected. Petitions filed on August 10 may also be rejected, subject to the final accounting of cases. See http://uscis.gov/graphics/publicaffairs/newsrels/H-1Bcap_12Aug05.pdf

"Cap-subject" H-1B visas are only those cases for new hires, who have never previously held H-1B petitions. For instance, students, off shore hires, and those wishing to change from another visa classification.
"Company transfer" H-1B visas are NOT subject to the just-announced cap. Likewise, H-1B cases for graduates of US Master degree (or higher) programs and H-1B cases for some non-profit research organizations and higher education institutions are also still eligible to be filed.