WASHINGTON (CNN) -- Nearly seven years after their defeat by U.S. forces, the Taliban have regrouped and have formed a "resilient insurgency," according to a new Pentagon report on security in Afghanistan.

On the same day the number of U.S. and allied troops killed in Afghanistan in June has reached 40, the highest monthly toll of the 7-year-old war.

"The Report Toward Security and Stability in Afghanistan," the first progress report to Congress, says that although there has been some progress in battling the Taliban, setbacks are expected.

http://www.cnn.com/2008/WORLD/asiapcf/06/27/afghan.fighting/index.html